RH (NYSE:RH – Get Free Report) and Warby Parker (NYSE:WRBY – Get Free Report) are both mid-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.
Profitability
This table compares RH and Warby Parker’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RH | 3.22% | -161.72% | 2.70% |
| Warby Parker | 0.08% | 1.96% | 1.01% |
Analyst Recommendations
This is a summary of current recommendations and price targets for RH and Warby Parker, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RH | 3 | 9 | 9 | 0 | 2.29 |
| Warby Parker | 0 | 8 | 11 | 0 | 2.58 |
Insider and Institutional Ownership
90.2% of RH shares are owned by institutional investors. Comparatively, 93.2% of Warby Parker shares are owned by institutional investors. 27.0% of RH shares are owned by insiders. Comparatively, 18.2% of Warby Parker shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares RH and Warby Parker”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RH | $3.18 billion | 1.01 | $72.41 million | $5.54 | 30.89 |
| Warby Parker | $771.32 million | 3.62 | -$20.39 million | $0.01 | 2,638.00 |
RH has higher revenue and earnings than Warby Parker. RH is trading at a lower price-to-earnings ratio than Warby Parker, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
RH has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500. Comparatively, Warby Parker has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500.
Summary
RH beats Warby Parker on 8 of the 14 factors compared between the two stocks.
About RH
RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.
About Warby Parker
Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.
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