WallStSmart

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

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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 (-11.9%)

Margin of Safety

-11.9%

Fair Value

$8.73

Current Price

$6.33

$2.40 premium

UndervaluedFair: $8.73Overvalued
BABAUndervalued (+60.0%)

Margin of Safety

+60.0%

Fair Value

$380.73

Current Price

$121.06

$259.67 discount

UndervaluedFair: $380.73Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARHS2 strengths · Avg: 8.0/10
P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

BABA6 strengths · Avg: 9.2/10
Market CapQuality
$270.36B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.3910/10

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
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

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, Price/Book.

Bull Case : BABA

The strongest argument for BABA centers on Market Cap, PEG Ratio, EPS Growth. PEG of 0.39 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 2.34 — 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) stands as a prominent leader in the premium home furnishings sector, renowned for its commitment to high-quality, sustainably sourced products that marry exceptional craftsmanship with timeless aesthetics. Established in 1986, the company specializes in offering luxury, customizable furniture and décor that resonate with discerning consumers focused on style and environmental responsibility. By utilizing recycled and reclaimed materials, Arhaus caters to a growing eco-conscious clientele while driving innovation in product offerings. With strategic initiatives aimed at expanding its retail presence and bolstering digital engagement, Arhaus is poised for significant growth as consumer demand for premium home furnishings continues to rise.

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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