WallStSmart

Arhaus Inc (ARHS)vsWilliams-Sonoma Inc (WSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Williams-Sonoma Inc generates 470% more annual revenue ($7.88B vs $1.38B). WSM leads profitability with a 13.8% profit margin vs 4.7%. ARHS trades at a lower P/E of 15.8x. WSM earns a higher WallStSmart Score of 54/100 (C-).

ARHS

Hold

43

out of 100

Grade: D

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

WSM

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 8.5Value: 4.3Quality: 6.0
Piotroski: 2/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARHSOvervalued (-11.9%)

Margin of Safety

-11.9%

Fair Value

$8.73

Current Price

$6.33

$2.40 premium

UndervaluedFair: $8.73Overvalued

Intrinsic value data unavailable for WSM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARHS2 strengths · Avg: 8.0/10
P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

WSM2 strengths · Avg: 10.0/10
Return on EquityProfitability
58.2%10/10

Every $100 of equity generates 58 in profit

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

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

WSM4 concerns · Avg: 4.0/10
P/E RatioValuation
25.1x4/10

Moderate valuation

Price/BookValuation
12.9x4/10

Trading at 12.9x book value

Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

EPS GrowthGrowth
4.3%4/10

4.3% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : ARHS

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

Bull Case : WSM

The strongest argument for WSM centers on Return on Equity, Altman Z-Score.

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 : WSM

The primary concerns for WSM are P/E Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

ARHS carries more volatility with a beta of 2.34 — expect wider price swings.

WSM is growing revenue faster at 4.4% — sustainability is the question.

WSM generates stronger free cash flow (99M), providing more financial flexibility.

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

Bottom Line

WSM scores higher overall (54/100 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) stands as a prominent leader in the premium home furnishings sector, renowned for its commitment to high-quality, sustainably sourced products that marry exceptional craftsmanship with timeless aesthetics. Established in 1986, the company specializes in offering luxury, customizable furniture and décor that resonate with discerning consumers focused on style and environmental responsibility. By utilizing recycled and reclaimed materials, Arhaus caters to a growing eco-conscious clientele while driving innovation in product offerings. With strategic initiatives aimed at expanding its retail presence and bolstering digital engagement, Arhaus is poised for significant growth as consumer demand for premium home furnishings continues to rise.

Visit Website →

Williams-Sonoma Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Williams-Sonoma, Inc. is an omnichannel specialty retailer of various home products. The company is headquartered in San Francisco, California.

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