WallStSmart

Arhaus Inc (ARHS)vsThe Home Depot Inc (HD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Home Depot Inc generates 11953% more annual revenue ($166.59B vs $1.38B). HD leads profitability with a 8.4% profit margin vs 4.7%. ARHS trades at a lower P/E of 15.8x. HD earns a higher WallStSmart Score of 54/100 (C-).

ARHS

Hold

43

out of 100

Grade: D

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

HD

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 7.5Value: 4.0Quality: 5.0
Piotroski: 2/9Altman Z: 3.59
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
HDSignificantly Overvalued (-65.3%)

Margin of Safety

-65.3%

Fair Value

$213.57

Current Price

$355.62

$142.05 premium

UndervaluedFair: $213.57Overvalued

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

HD4 strengths · Avg: 9.5/10
Market CapQuality
$337.29B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
101.0%10/10

Every $100 of equity generates 101 in profit

Altman Z-ScoreHealth
3.5910/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$5.19B8/10

Generating 5.2B in free cash flow

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

HD4 concerns · Avg: 3.3/10
PEG RatioValuation
1.874/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Price/BookValuation
25.5x2/10

Trading at 25.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ARHS

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

Bull Case : HD

The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.

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 : HD

The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

HD is growing revenue faster at 4.8% — sustainability is the question.

HD generates stronger free cash flow (5.2B), providing more financial flexibility.

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

Bottom Line

HD scores higher overall (54/100 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.

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The Home Depot Inc

CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA

The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.

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