WallStSmart

RH (RH)vsWilliams-Sonoma Inc (WSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Williams-Sonoma Inc generates 130% more annual revenue ($7.88B vs $3.43B). WSM leads profitability with a 13.8% profit margin vs 3.0%. RH appears more attractively valued with a PEG of 1.13. RH earns a higher WallStSmart Score of 56/100 (C).

RH

Buy

56

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 5.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.92

WSM

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 8.5Value: 4.3Quality: 6.0
Piotroski: 2/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RHUndervalued (+3.6%)

Margin of Safety

+3.6%

Fair Value

$207.32

Current Price

$176.14

$31.18 discount

UndervaluedFair: $207.32Overvalued

Intrinsic value data unavailable for WSM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RH2 strengths · Avg: 9.5/10
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

WSM2 strengths · Avg: 10.0/10
Return on EquityProfitability
58.2%10/10

Every $100 of equity generates 58 in profit

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

Areas to Watch

RH4 concerns · Avg: 3.0/10
P/E RatioValuation
36.2x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
0.3%3/10

Operating margin of 0.3%

Price/BookValuation
58.5x2/10

Trading at 58.5x book value

WSM4 concerns · Avg: 4.0/10
P/E RatioValuation
25.6x4/10

Moderate valuation

Price/BookValuation
14.7x4/10

Trading at 14.7x book value

Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

EPS GrowthGrowth
4.3%4/10

4.3% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : RH

The strongest argument for RH centers on EPS Growth, Return on Equity. PEG of 1.13 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.

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.

Bear Case : WSM

The primary concerns for WSM are P/E Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

RH carries more volatility with a beta of 1.88 — expect wider price swings.

WSM is growing revenue faster at 4.4% — sustainability is the question.

WSM generates stronger free cash flow (99M), providing more financial flexibility.

Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RH scores higher overall (56/100 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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