WallStSmart

Floor & Decor Holdings Inc (FND)vsRH (RH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Floor & Decor Holdings Inc generates 36% more annual revenue ($4.68B vs $3.43B). FND leads profitability with a 4.3% profit margin vs 3.0%. RH appears more attractively valued with a PEG of 0.79. RH earns a higher WallStSmart Score of 61/100 (C+).

FND

Hold

40

out of 100

Grade: D

Growth: 2.7Profit: 4.5Value: 6.0Quality: 5.5
Piotroski: 3/9Altman Z: 2.05

RH

Buy

61

out of 100

Grade: C+

Growth: 4.7Profit: 6.0Value: 6.7Quality: 4.3
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FNDUndervalued (+15.3%)

Margin of Safety

+15.3%

Fair Value

$81.36

Current Price

$47.41

$33.95 discount

UndervaluedFair: $81.36Overvalued
RHUndervalued (+4.3%)

Margin of Safety

+4.3%

Fair Value

$208.94

Current Price

$146.63

$62.31 discount

UndervaluedFair: $208.94Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FND1 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

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
0.798/10

Growing faster than its price suggests

Areas to Watch

FND4 concerns · Avg: 3.5/10
PEG RatioValuation
2.204/10

Expensive relative to growth rate

P/E RatioValuation
29.0x4/10

Moderate valuation

Profit MarginProfitability
4.3%3/10

4.3% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

RH4 concerns · Avg: 3.0/10
P/E RatioValuation
29.6x4/10

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
45.5x2/10

Trading at 45.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : FND

The strongest argument for FND centers on Price/Book.

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 : FND

The primary concerns for FND are PEG Ratio, P/E Ratio, Profit Margin. Thin 4.3% 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.

FND is growing revenue faster at -0.7% — sustainability is the question.

RH generates stronger free cash flow (52M), providing more financial flexibility.

Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RH scores higher overall (61/100 vs 40/100). FND offers better value entry with a 15.3% 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.

Floor & Decor Holdings Inc

CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA

Floor & Decor Holdings, Inc. is a multi-channel specialty retailer of hard surface flooring and related accessories. The company is headquartered in Atlanta, Georgia.

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RH

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

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

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