Whole Foods Market, Inc. (WFM), The Hain Celestial Group, Inc. (HAIN): Going Green May Earn You Green

Perhaps a better indicator of the health and success of Whole Foods is their profit margin in combination with their revenue. The chart shows both a healthy profit margin and a steady increase.  If you then compare it to a standard grocery store chain, like Kroger, you will see that its profit margin is excellent in comparison.  This is a great sign for Whole Foods, particularly since organic foods have a higher price point and a target audience already willing to pay the higher prices.

WFM Profit Margin Quarterly data by YCharts

In all, it looks like organics are worth a look. Just keep in mind that they do not have a long history and that companies offering a variety of products may fare better. It is also important to check revenue growth and profit margins, while they are historical and do not necessarily predict the future, they are strong indicators of a potential trend.  In essence, going green may bring you some green.

Denise Smith has no position in any stocks mentioned. The Motley Fool recommends Hain Celestial and Whole Foods Market. The Motley Fool owns shares of Hain Celestial and Whole Foods Market.

The article Going Green May Earn You Green originally appeared on Fool.com.

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