Arhaus Inc (ARHS)vsThe Home Depot Inc (HD)
ARHS
Arhaus Inc
$13.52
-7.14%
CONSUMER CYCLICAL · Cap: $2.06B
HD
The Home Depot Inc
$348.28
-0.87%
CONSUMER CYCLICAL · Cap: $328.44B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 11713% more annual revenue ($169.18B vs $1.43B). HD leads profitability with a 8.4% profit margin vs 4.5%. HD trades at a lower P/E of 23.0x. HD earns a higher WallStSmart Score of 58/100 (C).
ARHS
Hold43
out of 100
Grade: D
HD
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.8%
Fair Value
$12.99
Current Price
$13.52
$0.53 discount
Margin of Safety
-57.0%
Fair Value
$218.75
Current Price
$348.27
$129.52 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Mega-cap, among the largest globally
Every $100 of equity generates 86 in profit
Safe zone — low bankruptcy risk
Generating 4.5B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Grey zone — moderate risk
4.5% margin — thin
Elevated debt levels
Expensive relative to growth rate
4.6% earnings growth
Weak financial health signals
Trading at 20.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ARHS
ARHS has a balanced fundamental profile.
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 P/E Ratio, Altman Z-Score, Profit Margin. Thin 4.5% margins leave little buffer for downturns.
Bear Case : HD
The primary concerns for HD are PEG Ratio, EPS Growth, Piotroski F-Score. Debt-to-equity of 3.77 is elevated, increasing financial risk.
Key Dynamics to Monitor
ARHS carries more volatility with a beta of 2.25 — expect wider price swings.
ARHS is growing revenue faster at 6.8% — sustainability is the question.
HD generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (58/100 vs 43/100). ARHS offers better value entry with a 24.8% margin of safety. 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 premier name in the premium home furnishings sector, celebrated for its commitment to sustainable luxury and exceptional craftsmanship. Established in 1986, the company offers a curated selection of high-end, customizable furniture and décor that appeals to discerning consumers prioritizing both aesthetic and environmental values. Arhaus leverages recycled and reclaimed materials in its offerings, aligning with the rising consumer demand for eco-friendly products while simultaneously pursuing strategic expansion in both physical and digital retail channels. With a focus on innovation and adaptability to market trends, Arhaus is poised for significant growth in the evolving landscape of home furnishings.
Visit Website →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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