Financial Comparison: Arhaus (NASDAQ:ARHS) vs. RH (NYSE:RH)

RH (NYSE:RH) and Arhaus (NASDAQ:ARHS) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for RH and Arhaus, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RH 0 4 10 0 2.71
Arhaus 0 1 8 0 2.89

RH currently has a consensus price target of $714.69, suggesting a potential upside of 59.72%. Arhaus has a consensus price target of $15.00, suggesting a potential upside of 44.09%. Given RH’s higher probable upside, research analysts plainly believe RH is more favorable than Arhaus.

Earnings & Valuation

This table compares RH and Arhaus’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RH $2.85 billion 3.37 $271.82 million $21.47 20.84
Arhaus N/A N/A N/A N/A N/A

RH has higher revenue and earnings than Arhaus.

Profitability

This table compares RH and Arhaus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RH 18.31% 104.49% 19.86%
Arhaus N/A N/A N/A

Institutional and Insider Ownership

94.5% of RH shares are owned by institutional investors. Comparatively, 86.2% of Arhaus shares are owned by institutional investors. 33.0% of RH shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

RH beats Arhaus on 8 of the 9 factors compared between the two stocks.

About RH

RH, together with its subsidiaries, operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, and child and teen furnishings. The company provides its products through its retail galleries; and Source Books, a series of catalogs, as well as online through rh.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com. As of January 30, 2021, it operated a total of 68 RH Galleries and 38 RH outlet stores in 31 states in the District of Columbia and Canada, as well as 14 Waterworks showrooms throughout the United States and the United Kingdom. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.

About Arhaus

Arhaus Inc. is a lifestyle brand and omni-channel retailer of premium home furnishings. The company offers assortment of heirloom quality products. Arhaus Inc. is based in BOSTON HEIGHTS, Ohio.

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