WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Best Buy Co. Inc generates 2896% more annual revenue ($42.20B vs $1.41B). ARHS leads profitability with a 4.9% profit margin vs 3.0%. BBY trades at a lower P/E of 15.5x. BBY earns a higher WallStSmart Score of 60/100 (C+).

ARHS

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 6.0Value: 7.0Quality: 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

ARHSUndervalued (+22.6%)

Margin of Safety

+22.6%

Fair Value

$12.62

Current Price

$9.02

$3.60 discount

UndervaluedFair: $12.62Overvalued
BBYSignificantly Overvalued (-60.1%)

Margin of Safety

-60.1%

Fair Value

$41.89

Current Price

$90.80

$48.91 premium

UndervaluedFair: $41.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARHS1 strengths · Avg: 8.0/10
P/E RatioValuation
17.5x8/10

Attractively priced relative to earnings

BBY4 strengths · Avg: 9.5/10
Return on EquityProfitability
40.0%10/10

Every $100 of equity generates 40 in profit

EPS GrowthGrowth
70.1%10/10

Earnings expanding 70.1% YoY

Altman Z-ScoreHealth
3.6410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

Areas to Watch

ARHS4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Market CapQuality
$1.32B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.9%3/10

4.9% margin — thin

Debt/EquityHealth
1.473/10

Elevated debt levels

BBY4 concerns · Avg: 3.5/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.6%4/10

3.6% revenue growth

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.9%3/10

Operating margin of 3.9%

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, EPS Growth, Altman Z-Score.

Bear Case : ARHS

The primary concerns for ARHS are Altman Z-Score, Market Cap, Profit Margin. Thin 4.9% margins leave little buffer for downturns.

Bear Case : BBY

The primary concerns for BBY are PEG Ratio, Revenue Growth, Profit Margin. Thin 3.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

ARHS carries more volatility with a beta of 2.32 — expect wider price swings.

ARHS is growing revenue faster at 7.4% — sustainability is the question.

BBY generates stronger free cash flow (737M), providing more financial flexibility.

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

Bottom Line

BBY scores higher overall (60/100 vs 52/100). ARHS offers better value entry with a 22.6% margin of safety. Both earn "Buy" and "Buy" 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) stands as a premier name in the premium home furnishings sector, celebrated for its commitment to sustainable luxury and exceptional craftsmanship. Established in 1986, the company offers a curated selection of high-end, customizable furniture and décor that appeals to discerning consumers prioritizing both aesthetic and environmental values. Arhaus leverages recycled and reclaimed materials in its offerings, aligning with the rising consumer demand for eco-friendly products while simultaneously pursuing strategic expansion in both physical and digital retail channels. With a focus on innovation and adaptability to market trends, Arhaus is poised for significant growth in the evolving landscape of home furnishings.

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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