Tractor Supply (NASDAQ:TSCO) versus Arhaus (NASDAQ:ARHS) Head-To-Head Analysis

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

Risk & Volatility

Arhaus has a beta of 2.54, suggesting that its stock price is 154% more volatile than the S&P 500. Comparatively, Tractor Supply has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Arhaus and Tractor Supply’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arhaus	5.33%	20.08%	5.62%
Tractor Supply	7.18%	46.83%	10.73%

Institutional & Insider Ownership

27.9% of Arhaus shares are owned by institutional investors. Comparatively, 98.7% of Tractor Supply shares are owned by institutional investors. 1.8% of Arhaus shares are owned by company insiders. Comparatively, 0.7% of Tractor Supply shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Arhaus and Tractor Supply”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arhaus	$1.27 billion	1.14	$68.55 million	$0.50	20.60
Tractor Supply	$14.88 billion	1.91	$1.10 billion	$2.04	26.33

Tractor Supply has higher revenue and earnings than Arhaus. Arhaus is trading at a lower price-to-earnings ratio than Tractor Supply, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Arhaus and Tractor Supply, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arhaus	0	14	4	0	2.22
Tractor Supply	0	8	14	0	2.64

Arhaus presently has a consensus target price of $10.92, suggesting a potential upside of 6.05%. Tractor Supply has a consensus target price of $61.90, suggesting a potential upside of 15.25%. Given Tractor Supply’s stronger consensus rating and higher possible upside, analysts clearly believe Tractor Supply is more favorable than Arhaus.

Summary

Tractor Supply beats Arhaus on 12 of the 14 factors compared between the two stocks.

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.

About Tractor Supply

Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise. It provides its products under the 4health, Paws & Claws, American Farmworks, Producer's Pride, Bit & Bridle, Red Shed, Blue Mountain, Redstone, C.E. Schmidt, Retriever, Country Lane, Ridgecut, Countyline, Royal Wing, Country Tuff, Strive, Dumor, Traveller, Farm Table, Treeline, Groundwork, TSC Tractor Supply Co, Huskee, Untamed, and JobSmart brand names. The company operates its retail stores under the Tractor Supply Company, Petsense by Tractor Supply, and Orscheln Farm and Home names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.