RH (RH)vsWilliams-Sonoma Inc (WSM)
RH
RH
$136.94
+6.34%
CONSUMER CYCLICAL · Cap: $2.40B
WSM
Williams-Sonoma Inc
$181.93
+0.46%
CONSUMER CYCLICAL · Cap: $21.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Williams-Sonoma Inc generates 129% more annual revenue ($7.81B vs $3.41B). WSM leads profitability with a 13.9% profit margin vs 3.2%. RH appears more attractively valued with a PEG of 0.41. RH earns a higher WallStSmart Score of 64/100 (C+).
RH
Buy64
out of 100
Grade: C+
WSM
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-56.4%
Fair Value
$127.85
Current Price
$136.94
$9.09 premium
Margin of Safety
-254.6%
Fair Value
$60.11
Current Price
$181.93
$121.82 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 30 in profit
Every $100 of equity generates 52 in profit
Safe zone — low bankruptcy risk
Strong operational efficiency at 20.3%
Areas to Watch
3.2% margin — thin
Trading at 760.8x book value
Expensive relative to growth rate
Trading at 10.4x book value
Weak financial health signals
Revenue declined 4.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : RH
The strongest argument for RH centers on PEG Ratio, Return on Equity. PEG of 0.41 suggests the stock is reasonably priced for its growth.
Bull Case : WSM
The strongest argument for WSM centers on Return on Equity, Altman Z-Score, Operating Margin.
Bear Case : RH
The primary concerns for RH are Profit Margin, Price/Book. Thin 3.2% 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
RH profiles as a value stock while WSM is a declining play — different risk/reward profiles.
RH carries more volatility with a beta of 2.10 — expect wider price swings.
RH is growing revenue faster at 8.9% — sustainability is the question.
WSM generates stronger free cash flow (517M), providing more financial flexibility.
Bottom Line
RH scores higher overall (64/100 vs 52/100). 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.
RH
CONSUMER CYCLICAL · SPECIALTY RETAIL · USA
RH, is a home furnishings retailer. The company is headquartered in Corte Madera, California.
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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