WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Best Buy Co. Inc generates 2929% more annual revenue ($41.86B vs $1.38B). ARHS leads profitability with a 4.7% profit margin vs 2.7%. ARHS trades at a lower P/E of 15.8x. BBY earns a higher WallStSmart Score of 60/100 (C+).

ARHS

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 5.5Value: 5.7Quality: 4.5
Piotroski: 2/9Altman Z: 1.82

BBY

Buy

60

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 4.7Quality: 6.0
Piotroski: 5/9Altman Z: 3.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARHSOvervalued (-11.3%)

Margin of Safety

-11.3%

Fair Value

$8.78

Current Price

$9.60

$0.82 premium

UndervaluedFair: $8.78Overvalued
BBYSignificantly Overvalued (-64.7%)

Margin of Safety

-64.7%

Fair Value

$40.72

Current Price

$82.00

$41.28 premium

UndervaluedFair: $40.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARHS1 strengths · Avg: 8.0/10
P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

BBY4 strengths · Avg: 9.0/10
Return on EquityProfitability
37.1%10/10

Every $100 of equity generates 37 in profit

Altman Z-ScoreHealth
3.6410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
16.0x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
37.9%8/10

Earnings expanding 37.9% YoY

Areas to Watch

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

0.9% revenue growth

Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Market CapQuality
$1.05B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.7%3/10

4.7% margin — thin

BBY4 concerns · Avg: 3.5/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.9%4/10

1.9% revenue growth

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : ARHS

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

Bull Case : BBY

The strongest argument for BBY centers on Return on Equity, Altman Z-Score, P/E Ratio.

Bear Case : ARHS

The primary concerns for ARHS are Revenue Growth, Altman Z-Score, Market Cap. Debt-to-equity of 1.61 is elevated, increasing financial risk. Thin 4.7% margins leave little buffer for downturns.

Bear Case : BBY

The primary concerns for BBY are PEG Ratio, Revenue Growth, Profit Margin. Thin 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

ARHS carries more volatility with a beta of 2.29 — expect wider price swings.

BBY is growing revenue faster at 1.9% — sustainability is the question.

BBY generates stronger free cash flow (215M), providing more financial flexibility.

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

Bottom Line

BBY scores higher overall (60/100 vs 43/100). 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 distinguished leader in the premium home furnishings market, recognized for its dedication to sustainable, high-quality products that blend exquisite craftsmanship with classic design. Founded in 1986, the company specializes in luxury, customizable furniture and décor, targeting a sophisticated consumer base that values both style and environmental responsibility. Leveraging recycled and reclaimed materials, Arhaus not only addresses the growing demand for eco-conscious products but also focuses on innovation and expanding its retail footprint. With a clear strategy to enhance digital engagement and adapt to evolving market trends, Arhaus is well-positioned for robust growth in the premium home furnishings sector.

Visit Website →

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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