DICK’S Sporting Goods (NYSE:DKS) vs. Arhaus (NASDAQ:ARHS) Financial Survey

DICK’S Sporting Goods (NYSE:DKS) and Arhaus (NASDAQ:ARHS) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

89.8% of DICK’S Sporting Goods shares are held by institutional investors. Comparatively, 27.9% of Arhaus shares are held by institutional investors. 32.6% of DICK’S Sporting Goods shares are held by company insiders. Comparatively, 1.5% of Arhaus shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares DICK’S Sporting Goods and Arhaus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DICK’S Sporting Goods	8.49%	38.06%	11.28%
Arhaus	4.53%	17.36%	4.72%

Volatility and Risk

DICK’S Sporting Goods has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Arhaus has a beta of 2.63, indicating that its share price is 163% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for DICK’S Sporting Goods and Arhaus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DICK’S Sporting Goods	1	9	9	0	2.42
Arhaus	0	11	4	0	2.27

DICK’S Sporting Goods currently has a consensus price target of $220.11, suggesting a potential upside of 26.41%. Arhaus has a consensus price target of $10.50, suggesting a potential upside of 20.14%. Given DICK’S Sporting Goods’ stronger consensus rating and higher possible upside, equities research analysts plainly believe DICK’S Sporting Goods is more favorable than Arhaus.

Earnings & Valuation

This table compares DICK’S Sporting Goods and Arhaus”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DICK’S Sporting Goods	$13.44 billion	1.04	$1.17 billion	$13.98	12.46
Arhaus	$1.29 billion	0.96	$68.55 million	$0.41	21.32

DICK’S Sporting Goods has higher revenue and earnings than Arhaus. DICK’S Sporting Goods is trading at a lower price-to-earnings ratio than Arhaus, indicating that it is currently the more affordable of the two stocks.

Summary

DICK’S Sporting Goods beats Arhaus on 12 of the 14 factors compared between the two stocks.

About DICK’S Sporting Goods

Dick’s Sporting Goods, Inc. engages in the retailing of an extensive assortment of authentic sports equipment, apparel, footwear, and accessories. It also offers its products both online and through mobile applications. The company was founded by Richard T. Stack in 1948 and is headquartered in Coraopolis, PA.

About Arhaus

Arhaus, Inc. operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It offers lighting products, including various distinct and artistic lighting fixtures comprising chandeliers, pendants, table and floor lamps, and sconces; textile products, such as handcrafted indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, including various wall art to mirrors, vases to candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, e-commerce platform, print and digital media, and in-home designer services. Arhaus, Inc. was founded in 1986 and is headquartered in Boston Heights, Ohio.