WallStSmart

Five Below Inc (FIVE)vsRH (RH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Five Below Inc generates 55% more annual revenue ($5.31B vs $3.43B). FIVE leads profitability with a 11.7% profit margin vs 3.0%. RH appears more attractively valued with a PEG of 0.67. FIVE earns a higher WallStSmart Score of 70/100 (B).

FIVE

Strong Buy

70

out of 100

Grade: B

Growth: 8.7Profit: 7.0Value: 7.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.26

RH

Buy

61

out of 100

Grade: C+

Growth: 4.7Profit: 6.0Value: 6.7Quality: 3.5
Piotroski: 5/9Altman Z: 0.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FIVEUndervalued (+25.9%)

Margin of Safety

+25.9%

Fair Value

$278.16

Current Price

$244.60

$33.56 discount

UndervaluedFair: $278.16Overvalued
RHUndervalued (+3.1%)

Margin of Safety

+3.1%

Fair Value

$206.34

Current Price

$134.07

$72.27 discount

UndervaluedFair: $206.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FIVE4 strengths · Avg: 8.8/10
EPS GrowthGrowth
418.2%10/10

Earnings expanding 418.2% YoY

Return on EquityProfitability
25.0%9/10

Every $100 of equity generates 25 in profit

PEG RatioValuation
0.988/10

Growing faster than its price suggests

Revenue GrowthGrowth
22.9%8/10

Revenue surging 22.9% year-over-year

RH3 strengths · Avg: 9.0/10
EPS GrowthGrowth
112.5%10/10

Earnings expanding 112.5% YoY

Return on EquityProfitability
29.9%9/10

Every $100 of equity generates 30 in profit

PEG RatioValuation
0.678/10

Growing faster than its price suggests

Areas to Watch

FIVE1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

RH4 concerns · Avg: 3.0/10
P/E RatioValuation
27.5x4/10

Moderate valuation

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
0.3%3/10

Operating margin of 0.3%

Price/BookValuation
44.5x2/10

Trading at 44.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : FIVE

The strongest argument for FIVE centers on EPS Growth, Return on Equity, PEG Ratio. Revenue growth of 22.9% demonstrates continued momentum. PEG of 0.98 suggests the stock is reasonably priced for its growth.

Bull Case : RH

The strongest argument for RH centers on EPS Growth, Return on Equity, PEG Ratio. PEG of 0.67 suggests the stock is reasonably priced for its growth.

Bear Case : FIVE

The primary concerns for FIVE are Piotroski F-Score.

Bear Case : RH

The primary concerns for RH are P/E Ratio, Profit Margin, Operating Margin. Debt-to-equity of 67.57 is elevated, increasing financial risk. Thin 3.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

FIVE profiles as a growth stock while RH is a value play — different risk/reward profiles.

RH carries more volatility with a beta of 1.86 — expect wider price swings.

FIVE is growing revenue faster at 22.9% — sustainability is the question.

FIVE generates stronger free cash flow (142M), providing more financial flexibility.

Bottom Line

FIVE scores higher overall (70/100 vs 61/100) and 22.9% revenue growth. Both earn "Strong 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.

Five Below Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Five Below, Inc. is a specialty value retailer in the United States. The company is headquartered in Philadelphia, Pennsylvania.

RH

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

RH, is a home furnishings retailer. The company is headquartered in Corte Madera, California.

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