WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Williams-Sonoma Inc generates 466% more annual revenue ($7.81B vs $1.38B). WSM leads profitability with a 13.9% profit margin vs 4.9%. ARHS trades at a lower P/E of 14.3x. WSM earns a higher WallStSmart Score of 52/100 (C-).

ARHS

Hold

46

out of 100

Grade: D+

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

WSM

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 8.5Value: 7.3Quality: 5.8
Piotroski: 3/9Altman Z: 3.37
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
WSMSignificantly Overvalued (-254.6%)

Margin of Safety

-254.6%

Fair Value

$60.11

Current Price

$181.93

$121.82 premium

UndervaluedFair: $60.11Overvalued

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

WSM3 strengths · Avg: 9.3/10
Return on EquityProfitability
51.5%10/10

Every $100 of equity generates 52 in profit

Altman Z-ScoreHealth
3.3710/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

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

WSM4 concerns · Avg: 3.3/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

Price/BookValuation
10.4x4/10

Trading at 10.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-4.3%2/10

Revenue declined 4.3%

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, Operating Margin.

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 : WSM

The primary concerns for WSM are PEG Ratio, Price/Book, Piotroski F-Score.

Key Dynamics to Monitor

ARHS profiles as a value stock while WSM is a declining play — different risk/reward profiles.

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.

WSM generates stronger free cash flow (517M), providing more financial flexibility.

Bottom Line

WSM scores higher overall (52/100 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.

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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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