Best Buy Co. Inc (BBY)vsRH (RH)
BBY
Best Buy Co. Inc
$60.40
-2.12%
CONSUMER CYCLICAL · Cap: $12.93B
RH
RH
$136.94
+6.34%
CONSUMER CYCLICAL · Cap: $2.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Best Buy Co. Inc generates 1123% more annual revenue ($41.69B vs $3.41B). RH leads profitability with a 3.2% profit margin vs 2.6%. RH appears more attractively valued with a PEG of 0.41. RH earns a higher WallStSmart Score of 64/100 (C+).
BBY
Buy64
out of 100
Grade: C+
RH
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+71.6%
Fair Value
$235.87
Current Price
$60.40
$175.47 discount
Margin of Safety
-56.7%
Fair Value
$127.62
Current Price
$136.94
$9.32 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 37 in profit
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Generating 1.1B in free cash flow
Growing faster than its price suggests
Every $100 of equity generates 30 in profit
Areas to Watch
3.7% earnings growth
2.6% margin — thin
Revenue declined 1.0%
3.2% margin — thin
Trading at 760.8x book value
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : RH
The strongest argument for RH centers on PEG Ratio, Return on Equity. PEG of 0.41 suggests the stock is reasonably priced for its growth.
Bear Case : BBY
The primary concerns for BBY are EPS Growth, Profit Margin, Revenue Growth. Thin 2.6% margins leave little buffer for downturns.
Bear Case : RH
The primary concerns for RH are Profit Margin, Price/Book. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
RH carries more volatility with a beta of 2.10 — expect wider price swings.
RH is growing revenue faster at 8.9% — 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 64/100). 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.
Best Buy Co. Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.
RH
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
RH, is a home furnishings retailer. The company is headquartered in Corte Madera, California.
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