Comparing Arhaus (ARHS) & Its Rivals

Arhaus (NASDAQ:ARHS) is one of 20 public companies in the “RETAIL – MISC/DIV” industry, but how does it contrast to its peers? We will compare Arhaus to similar businesses based on the strength of its earnings, dividends, analyst recommendations, valuation, risk, institutional ownership and profitability.

Institutional and Insider Ownership

27.9% of Arhaus shares are owned by institutional investors. Comparatively, 78.9% of shares of all “RETAIL – MISC/DIV” companies are owned by institutional investors. 1.5% of Arhaus shares are owned by insiders. Comparatively, 6.5% of shares of all “RETAIL – MISC/DIV” companies are owned by 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.

Analyst Ratings

This is a summary of current ratings and price targets for Arhaus and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arhaus	0	11	4	0	2.27
Arhaus Competitors	207	1722	2646	80	2.56

Arhaus currently has a consensus target price of $10.50, indicating a potential upside of 19.45%. As a group, “RETAIL – MISC/DIV” companies have a potential upside of 1.33%. Given Arhaus’ higher probable upside, equities analysts plainly believe Arhaus is more favorable than its peers.

Valuation & Earnings

This table compares Arhaus and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Arhaus	$1.29 billion	$68.55 million	21.44
Arhaus Competitors	$13.94 billion	$608.19 million	13.81

Arhaus’ peers have higher revenue and earnings than Arhaus. Arhaus is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Arhaus has a beta of 2.56, meaning that its share price is 156% more volatile than the S&P 500. Comparatively, Arhaus’ peers have a beta of 1.26, meaning that their average share price is 26% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arhaus	4.53%	17.36%	4.72%
Arhaus Competitors	7.48%	8.10%	13.33%

Summary

Arhaus peers beat Arhaus on 9 of the 13 factors compared.

About Arhaus

Arhaus, Inc. operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It offers lighting products, including various distinct and artistic lighting fixtures comprising chandeliers, pendants, table and floor lamps, and sconces; textile products, such as handcrafted indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, including various wall art to mirrors, vases to candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, e-commerce platform, print and digital media, and in-home designer services. Arhaus, Inc. was founded in 1986 and is headquartered in Boston Heights, Ohio.