Compare Arhaus, Inc. (ARHS) vs Haverty Furniture Companies, Inc. (HVT) Stock

Arhaus, Inc. (ARHS) offers the better valuation at 17.2x trailing P/E (16.2x forward), making it the more compelling value choice. Analysts rate Arhaus, Inc. (ARHS) a "Buy" — based on 14 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Arhaus, Inc. (ARHS) is the cheapest at 17.2x versus Haverty Furniture Companies, Inc. at 9999.0x. On forward P/E, Haverty Furniture Companies, Inc. is actually cheaper at 12.7x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Haverty Furniture Companies, Inc. (HVT) delivered a total return of -7.5%, compared to -31.6% for Arhaus, Inc. (ARHS). A $10,000 investment in HVT five years ago would be worth approximately $9K today (assuming dividends reinvested). Over 10 years, the gap is even starker: HVT returned +108.3% versus ARHS's -31.6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Haverty Furniture Companies, Inc. (HVT) is the lower-risk stock at 0.86β versus Arhaus, Inc.'s 1.39β — meaning ARHS is approximately 63% more volatile than HVT relative to the S&P 500. On balance sheet safety, Haverty Furniture Companies, Inc. (HVT) carries a lower debt/equity ratio of 70% versus 139% for Arhaus, Inc. — giving it more financial flexibility in a downturn.

Arhaus, Inc. (ARHS) is the more profitable company, earning 4.9% net margin versus 2.6% for Haverty Furniture Companies, Inc. — meaning it keeps 4.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HVT leads at 27.9% versus 6.4% for ARHS. At the gross margin level — before operating expenses — HVT leads at 60.7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Haverty Furniture Companies, Inc. (HVT) trades at 12.7x forward P/E versus 16.2x for Arhaus, Inc. — 3.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HVT: 76.4% to $42.00.

In this comparison, HVT (5.3% yield) pays a dividend. ARHS does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Haverty Furniture Companies, Inc. (HVT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.86), 5.3% yield, +108.3% 10Y return). Both have compounded well over 10 years (HVT: +108.3%, ARHS: -31.6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: ARHS is a small-cap deep-value stock; HVT is a small-cap income-oriented stock. HVT pays a dividend while ARHS does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.