Arhaus vs RH Which Should You Buy?

Arhaus and RH (Restoration Hardware) are both prominent furniture companies known for their high-end, quality products. While Arhaus focuses on eco-friendly and sustainable practices, RH offers a more luxurious and grandiose aesthetic. Both companies have a strong following and offer a wide range of products for every room in the home. Customers often debate between Arhaus and RH when it comes to selecting furniture, as each brand offers unique styles and characteristics to cater to different tastes and preferences.

Arhaus or RH?

When comparing Arhaus and RH, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Arhaus and RH.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Arhaus has a dividend yield of 4.49%, while RH has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Arhaus reports a 5-year dividend growth of 0.00% year and a payout ratio of 89.39%. On the other hand, RH reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Arhaus P/E ratio at 19.88 and RH's P/E ratio at 206.44. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Arhaus P/B ratio is 4.87 while RH's P/B ratio is -30.36.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Arhaus has seen a 5-year revenue growth of 1.61%, while RH's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Arhaus's ROE at 24.99% and RH's ROE at -11.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $10.84 for Arhaus and $384.00 for RH. Over the past year, Arhaus's prices ranged from $8.30 to $19.81, with a yearly change of 138.67%. RH's prices fluctuated between $212.43 and $400.49, with a yearly change of 88.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.