Comparing Arhaus (ARHS) and Its Peers

Arhaus (NASDAQ:ARHS) is one of 20 public companies in the “RETAIL – MISC/DIV” industry, but how does it compare to its rivals? We will compare Arhaus to similar companies based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, valuation, earnings and risk.

Institutional & Insider Ownership

27.9% of Arhaus shares are owned by institutional investors. Comparatively, 78.9% of shares of all “RETAIL – MISC/DIV” companies are owned by institutional investors. 1.8% of Arhaus shares are owned by insiders. Comparatively, 6.6% of shares of all “RETAIL – MISC/DIV” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Arhaus and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arhaus	0	11	4	0	2.27
Arhaus Competitors	207	1721	2644	80	2.56

Arhaus presently has a consensus price target of $10.50, indicating a potential upside of 10.88%. As a group, “RETAIL – MISC/DIV” companies have a potential upside of 2.01%. Given Arhaus’ higher probable upside, equities analysts plainly believe Arhaus is more favorable than its rivals.

Earnings & Valuation

This table compares Arhaus and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Arhaus	$1.27 billion	$68.55 million	23.10
Arhaus Competitors	$13.94 billion	$608.19 million	14.24

Arhaus’ rivals have higher revenue and earnings than Arhaus. Arhaus is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Arhaus and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arhaus	4.53%	17.36%	4.72%
Arhaus Competitors	7.47%	8.13%	13.33%

Risk & Volatility

Arhaus has a beta of 2.56, meaning that its stock price is 156% more volatile than the S&P 500. Comparatively, Arhaus’ rivals have a beta of 1.26, meaning that their average stock price is 26% more volatile than the S&P 500.

Summary

Arhaus rivals beat Arhaus on 9 of the 13 factors compared.

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.