Best Buy Co. Inc (BBY)vsRH (RH)
BBY
Best Buy Co. Inc
$71.54
+0.77%
CONSUMER CYCLICAL · Cap: $16.55B
RH
RH
$146.63
-4.32%
CONSUMER CYCLICAL · Cap: $2.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Best Buy Co. Inc generates 1122% more annual revenue ($41.86B vs $3.43B). RH leads profitability with a 3.0% profit margin vs 2.7%. RH appears more attractively valued with a PEG of 0.79. BBY earns a higher WallStSmart Score of 62/100 (C+).
BBY
Buy62
out of 100
Grade: C+
RH
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-67.0%
Fair Value
$40.17
Current Price
$71.54
$31.37 premium
Margin of Safety
+4.3%
Fair Value
$208.94
Current Price
$146.63
$62.31 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 37 in profit
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Earnings expanding 37.9% YoY
Earnings expanding 112.5% YoY
Every $100 of equity generates 30 in profit
Growing faster than its price suggests
Areas to Watch
1.9% revenue growth
2.7% margin — thin
Operating margin of 4.0%
Elevated debt levels
Moderate valuation
3.0% margin — thin
Operating margin of 0.3%
Trading at 45.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : BBY
The strongest argument for BBY centers on Return on Equity, Altman Z-Score, P/E Ratio.
Bull Case : RH
The strongest argument for RH centers on EPS Growth, Return on Equity, PEG Ratio. PEG of 0.79 suggests the stock is reasonably priced for its growth.
Bear Case : BBY
The primary concerns for BBY are Revenue Growth, Profit Margin, Operating Margin. Thin 2.7% margins leave little buffer for downturns.
Bear Case : RH
The primary concerns for RH are P/E Ratio, Profit Margin, Operating Margin. Debt-to-equity of 65.50 is elevated, increasing financial risk. Thin 3.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
RH carries more volatility with a beta of 1.90 — expect wider price swings.
BBY is growing revenue faster at 1.9% — sustainability is the question.
BBY generates stronger free cash flow (215M), providing more financial flexibility.
Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BBY scores higher overall (62/100 vs 61/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Best Buy Co. Inc
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.
RH
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
RH, is a home furnishings retailer. The company is headquartered in Corte Madera, California.
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