WallStSmart

Arhaus Inc (ARHS)vsAlibaba Group Holding Ltd (BABA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alibaba Group Holding Ltd generates 73965% more annual revenue ($1.02T vs $1.38B). BABA leads profitability with a 10.1% profit margin vs 4.7%. ARHS trades at a lower P/E of 15.8x. BABA earns a higher WallStSmart Score of 64/100 (C+).

ARHS

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 5.5Value: 5.7Quality: 4.5
Piotroski: 2/9Altman Z: 1.82

BABA

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 5.0Value: 9.3Quality: 6.5
Piotroski: 2/9Altman Z: 2.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARHSOvervalued (-11.3%)

Margin of Safety

-11.3%

Fair Value

$8.78

Current Price

$9.60

$0.82 premium

UndervaluedFair: $8.78Overvalued
BABAUndervalued (+59.5%)

Margin of Safety

+59.5%

Fair Value

$375.80

Current Price

$128.41

$247.39 discount

UndervaluedFair: $375.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARHS1 strengths · Avg: 8.0/10
P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

BABA6 strengths · Avg: 9.2/10
Market CapQuality
$293.02B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.4810/10

Growing faster than its price suggests

EPS GrowthGrowth
104.1%10/10

Earnings expanding 104.1% YoY

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

ARHS4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.9%4/10

0.9% revenue growth

Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Market CapQuality
$1.05B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.7%3/10

4.7% margin — thin

BABA4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Operating MarginProfitability
1.0%3/10

Operating margin of 1.0%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-18.10B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : ARHS

The strongest argument for ARHS centers on P/E Ratio.

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, PEG Ratio, EPS Growth. PEG of 0.48 suggests the stock is reasonably priced for its growth.

Bear Case : ARHS

The primary concerns for ARHS are Revenue Growth, Altman Z-Score, Market Cap. Debt-to-equity of 1.61 is elevated, increasing financial risk. Thin 4.7% margins leave little buffer for downturns.

Bear Case : BABA

The primary concerns for BABA are Revenue Growth, Operating Margin, Piotroski F-Score.

Key Dynamics to Monitor

ARHS carries more volatility with a beta of 2.29 — expect wider price swings.

BABA is growing revenue faster at 2.9% — sustainability is the question.

ARHS generates stronger free cash flow (-27M), providing more financial flexibility.

Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BABA scores higher overall (64/100 vs 43/100). 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 distinguished leader in the premium home furnishings market, recognized for its dedication to sustainable, high-quality products that blend exquisite craftsmanship with classic design. Founded in 1986, the company specializes in luxury, customizable furniture and décor, targeting a sophisticated consumer base that values both style and environmental responsibility. Leveraging recycled and reclaimed materials, Arhaus not only addresses the growing demand for eco-conscious products but also focuses on innovation and expanding its retail footprint. With a clear strategy to enhance digital engagement and adapt to evolving market trends, Arhaus is well-positioned for robust growth in the premium home furnishings sector.

Visit Website →

Alibaba Group Holding Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Alibaba Group Holding Limited, also known as Alibaba Group and Alibaba.com, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.

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