WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Best Buy Co. Inc generates 2923% more annual revenue ($41.69B vs $1.38B). ARHS leads profitability with a 4.9% profit margin vs 2.6%. BBY trades at a lower P/E of 12.2x. BBY earns a higher WallStSmart Score of 64/100 (C+).

ARHS

Hold

46

out of 100

Grade: D+

Growth: 4.0Profit: 6.0Value: 5.7Quality: 5.5
Piotroski: 1/9Altman Z: 1.93

BBY

Buy

64

out of 100

Grade: C+

Growth: 2.7Profit: 6.5Value: 10.0Quality: 6.8
Piotroski: 6/9Altman Z: 3.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARHSSignificantly Overvalued (-199.7%)

Margin of Safety

-199.7%

Fair Value

$3.26

Current Price

$6.85

$3.59 premium

UndervaluedFair: $3.26Overvalued
BBYUndervalued (+71.6%)

Margin of Safety

+71.6%

Fair Value

$235.87

Current Price

$60.40

$175.47 discount

UndervaluedFair: $235.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARHS2 strengths · Avg: 8.0/10
P/E RatioValuation
14.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

BBY4 strengths · Avg: 9.0/10
Return on EquityProfitability
37.0%10/10

Every $100 of equity generates 37 in profit

Altman Z-ScoreHealth
3.5410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
12.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.10B8/10

Generating 1.1B in free cash flow

Areas to Watch

ARHS4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.934/10

Grey zone — moderate risk

Market CapQuality
$966.69M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.9%3/10

4.9% margin — thin

Debt/EquityHealth
1.433/10

Elevated debt levels

BBY3 concerns · Avg: 3.0/10
EPS GrowthGrowth
3.7%4/10

3.7% earnings growth

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 Return on Equity, Altman Z-Score, P/E Ratio. PEG of 1.19 suggests the stock is reasonably priced for its growth.

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 EPS Growth, 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 2.53 — expect wider price swings.

ARHS is growing revenue faster at 5.1% — 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 46/100). 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 leading retailer in the premium home furnishings sector, celebrated for its high-quality, sustainably sourced products that merge exceptional craftsmanship with timeless design. Founded in 1986, the company has established a strong reputation for luxury and durability, offering a wide range of customizable furniture and home décor aimed at discerning consumers. Arhaus is deeply committed to environmental sustainability, utilizing recycled and reclaimed materials in its offerings to appeal to the eco-conscious market segment. As the demand for premium home furnishings continues to grow, Arhaus is poised to capitalize on this trend by expanding its retail footprint and enhancing its digital presence.

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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