The Fresh Market Inc (TFM), The Kroger Co. (KR): Is There a Reason to Worry About Whole Foods Market, Inc. (WFM)?

At the moment, Whole Foods still sits atop the organic food chain. Gross, operating, and net margins all surpass every rival except The Fresh Market Inc (NASDAQ:TFM), which leads the industry, but when you look at Whole Foods’ returns on equity and capital, it lags virtually everyone, even The Kroger Co. (NYSE:KR). As these smaller rivals gain more experience and are exposed to more consumers, we may yet see Whole Foods come down a peg or two.

I’m not particularly concerned the organic grocer will wilt like an heirloom tomato plant in a drought, but with shares at all-time highs and a market valuation generally well above the competition, I think it’s more likely we’ll see shares trend lower than continue the trajectory they’ve been on.

The article Is There a Reason to Worry About Whole Foods? originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends The Fresh Market. It recommends and owns shares of Facebook and Whole Foods Market.

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