WallStSmart

Arhaus Inc (ARHS)vsWilliams-Sonoma Inc (WSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Williams-Sonoma Inc generates 465% more annual revenue ($7.81B vs $1.38B). WSM leads profitability with a 13.9% profit margin vs 4.7%. ARHS trades at a lower P/E of 15.1x. WSM earns a higher WallStSmart Score of 52/100 (C-).

ARHS

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 5.5Value: 7.7Quality: 4.0
Piotroski: 1/9Altman Z: 1.93

WSM

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 8.5Value: 5.0Quality: 5.8
Piotroski: 3/9Altman Z: 3.37
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARHSUndervalued (+62.8%)

Margin of Safety

+62.8%

Fair Value

$26.24

Current Price

$6.50

$19.73 discount

UndervaluedFair: $26.24Overvalued

Intrinsic value data unavailable for WSM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARHS2 strengths · Avg: 8.0/10
P/E RatioValuation
15.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

WSM3 strengths · Avg: 9.3/10
Return on EquityProfitability
51.5%10/10

Every $100 of equity generates 52 in profit

Altman Z-ScoreHealth
3.3710/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Areas to Watch

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

0.9% revenue growth

Altman Z-ScoreHealth
1.934/10

Grey zone — moderate risk

Market CapQuality
$1.00B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.7%3/10

4.7% margin — thin

WSM4 concerns · Avg: 3.3/10
PEG RatioValuation
2.434/10

Expensive relative to growth rate

Price/BookValuation
10.4x4/10

Trading at 10.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-4.3%2/10

Revenue declined 4.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : ARHS

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

Bull Case : WSM

The strongest argument for WSM centers on Return on Equity, Altman Z-Score, Operating Margin.

Bear Case : ARHS

The primary concerns for ARHS are Revenue Growth, Altman Z-Score, Market Cap. Thin 4.7% margins leave little buffer for downturns.

Bear Case : WSM

The primary concerns for WSM are PEG Ratio, Price/Book, Piotroski F-Score.

Key Dynamics to Monitor

ARHS profiles as a value stock while WSM is a declining play — different risk/reward profiles.

ARHS carries more volatility with a beta of 2.42 — expect wider price swings.

ARHS is growing revenue faster at 0.9% — sustainability is the question.

WSM generates stronger free cash flow (517M), providing more financial flexibility.

Bottom Line

WSM scores higher overall (52/100 vs 43/100). ARHS offers better value entry with a 62.8% 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) is a prominent player in the premium home furnishings sector, renowned for its commitment to high-quality, sustainably sourced products that emphasize exceptional craftsmanship and timeless design. Established in 1986, the company has built a distinguished reputation for luxury and durability, offering an extensive array of customizable furniture and home décor tailored to discerning consumers. With a strong focus on environmental sustainability, Arhaus utilizes recycled and reclaimed materials, appealing to the eco-conscious market. As consumer demand for premium furnishings escalates, Arhaus is strategically positioned to expand its retail presence and enhance its digital capabilities, thus poised for significant growth in the evolving home furnishings landscape.

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Williams-Sonoma Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Williams-Sonoma, Inc. is an omnichannel specialty retailer of various home products. The company is headquartered in San Francisco, California.

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