Analyzing Arhaus (NASDAQ:ARHS) & RH (NYSE:RH)

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

Insider & Institutional Ownership

86.2% of Arhaus shares are held by institutional investors. Comparatively, 94.5% of RH shares are held by institutional investors. 33.0% of RH shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

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

Analyst Recommendations

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

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

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

Valuation & Earnings

This table compares Arhaus and RH’s revenue, earnings per share (EPS) and valuation.

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

RH has higher revenue and earnings than Arhaus.

Summary

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

Arhaus Company Profile

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.

RH Company Profile

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.

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