Arhaus (NASDAQ:ARHS – Get Free Report) and Petco Health and Wellness (NASDAQ:WOOF – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
Risk and Volatility
Arhaus has a beta of 2.52, indicating that its share price is 152% more volatile than the S&P 500. Comparatively, Petco Health and Wellness has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for Arhaus and Petco Health and Wellness, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arhaus | 0 | 11 | 3 | 0 | 2.21 |
| Petco Health and Wellness | 1 | 9 | 3 | 0 | 2.15 |
Profitability
This table compares Arhaus and Petco Health and Wellness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arhaus | 5.40% | 19.62% | 5.61% |
| Petco Health and Wellness | -0.04% | 0.46% | 0.10% |
Earnings & Valuation
This table compares Arhaus and Petco Health and Wellness”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arhaus | $1.27 billion | 1.21 | $68.55 million | $0.52 | 20.90 |
| Petco Health and Wellness | $6.12 billion | 0.16 | -$101.82 million | ($0.01) | -307.00 |
Arhaus has higher earnings, but lower revenue than Petco Health and Wellness. Petco Health and Wellness is trading at a lower price-to-earnings ratio than Arhaus, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
27.9% of Arhaus shares are held by institutional investors. 1.5% of Arhaus shares are held by insiders. Comparatively, 4.4% of Petco Health and Wellness shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Arhaus beats Petco Health and Wellness on 10 of the 13 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 Petco Health and Wellness
Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.
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