WallStSmart

Arhaus Inc (ARHS)vsBest Buy Co. Inc (BBY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Best Buy Co. Inc generates 2916% more annual revenue ($41.69B vs $1.38B). ARHS leads profitability with a 4.7% profit margin vs 2.6%. BBY trades at a lower P/E of 11.6x. BBY earns a higher WallStSmart Score of 64/100 (C+).

ARHS

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 5.5Value: 7.7Quality: 4.0
Piotroski: 1/9Altman Z: 1.93

BBY

Buy

64

out of 100

Grade: C+

Growth: 4.7Profit: 6.5Value: 8.0Quality: 6.8
Piotroski: 6/9Altman Z: 3.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARHSUndervalued (+62.8%)

Margin of Safety

+62.8%

Fair Value

$26.24

Current Price

$6.50

$19.73 discount

UndervaluedFair: $26.24Overvalued
BBYUndervalued (+17.0%)

Margin of Safety

+17.0%

Fair Value

$80.85

Current Price

$59.40

$21.45 discount

UndervaluedFair: $80.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARHS2 strengths · Avg: 8.0/10
P/E RatioValuation
15.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

BBY5 strengths · Avg: 9.6/10
P/E RatioValuation
11.6x10/10

Attractively priced relative to earnings

Return on EquityProfitability
37.0%10/10

Every $100 of equity generates 37 in profit

EPS GrowthGrowth
372.5%10/10

Earnings expanding 372.5% YoY

Altman Z-ScoreHealth
3.5410/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$1.10B8/10

Generating 1.1B in free cash flow

Areas to Watch

ARHS4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.9%4/10

0.9% revenue growth

Altman Z-ScoreHealth
1.934/10

Grey zone — moderate risk

Market CapQuality
$1.00B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.7%3/10

4.7% margin — thin

BBY2 concerns · Avg: 2.5/10
Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Revenue GrowthGrowth
-1.0%2/10

Revenue declined 1.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : ARHS

The strongest argument for ARHS centers on P/E Ratio, Price/Book.

Bull Case : BBY

The strongest argument for BBY centers on P/E Ratio, Return on Equity, EPS Growth. PEG of 1.10 suggests the stock is reasonably priced for its growth.

Bear Case : ARHS

The primary concerns for ARHS are Revenue Growth, Altman Z-Score, Market Cap. Thin 4.7% margins leave little buffer for downturns.

Bear Case : BBY

The primary concerns for BBY are Profit Margin, Revenue Growth. Thin 2.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

ARHS carries more volatility with a beta of 2.42 — expect wider price swings.

ARHS is growing revenue faster at 0.9% — sustainability is the question.

BBY generates stronger free cash flow (1.1B), providing more financial flexibility.

Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BBY scores higher overall (64/100 vs 43/100). ARHS offers better value entry with a 62.8% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arhaus Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Arhaus Inc. (ARHS) is a prominent player in the premium home furnishings sector, renowned for its commitment to high-quality, sustainably sourced products that emphasize exceptional craftsmanship and timeless design. Established in 1986, the company has built a distinguished reputation for luxury and durability, offering an extensive array of customizable furniture and home décor tailored to discerning consumers. With a strong focus on environmental sustainability, Arhaus utilizes recycled and reclaimed materials, appealing to the eco-conscious market. As consumer demand for premium furnishings escalates, Arhaus is strategically positioned to expand its retail presence and enhance its digital capabilities, thus poised for significant growth in the evolving home furnishings landscape.

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Best Buy Co. Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.

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