ARHS vs WSM vs RH vs ETSY

For growth investors, Arhaus, Inc.

(ARHS) is the stronger pick with 8. 5% revenue growth year-over-year, versus 1. 2% for Williams-Sonoma, Inc. (WSM). Arhaus, Inc. (ARHS) offers the better valuation at 14. 7x trailing P/E (13. 9x 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 14. 7x versus Etsy, Inc. at 46. 0x. On forward P/E, Arhaus, Inc. is actually cheaper at 13. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Arhaus, Inc. wins at 0. 46x versus Williams-Sonoma, Inc. 's 1. 36x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Williams-Sonoma, Inc.

(WSM) delivered a total return of +107. 3%, compared to -80. 9% for Rh (RH). Over 10 years, the gap is even starker: ETSY returned +681. 2% versus ARHS's -38. 1%. 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), Etsy, Inc.

(ETSY) is the lower-risk stock at 1. 22β versus Rh's 2. 36β — meaning RH is approximately 93% more volatile than ETSY relative to the S&P 500. On balance sheet safety, Williams-Sonoma, Inc. (WSM) carries a lower debt/equity ratio of 70% versus 139% for Arhaus, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Arhaus, Inc.

(ARHS) is pulling ahead at 8. 5% versus 1. 2% for Williams-Sonoma, Inc. (WSM). On earnings-per-share growth, the picture is similar: Williams-Sonoma, Inc. grew EPS 0. 6% year-over-year, compared to -40. 9% for Etsy, Inc.. Over a 3-year CAGR, ETSY leads at 4. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Williams-Sonoma, Inc.

(WSM) is the more profitable company, earning 13. 9% net margin versus 2. 3% for Rh — meaning it keeps 13. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WSM leads at 18. 1% versus 6. 4% for ARHS. At the gross margin level — before operating expenses — ETSY leads at 71. 6%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Arhaus, Inc. (ARHS) is the more undervalued stock at a PEG of 0. 46x versus Williams-Sonoma, Inc. 's 1. 36x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Arhaus, Inc. (ARHS) trades at 13. 9x forward P/E versus 21. 1x for Williams-Sonoma, Inc. — 7. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARHS: 57. 9% to $11. 17.

In this comparison, WSM (1.

4% yield) pays a dividend. ARHS, RH, ETSY do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Williams-Sonoma, Inc.

(WSM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1. 4% yield, +587. 8% 10Y return). Rh (RH) carries a higher beta of 2. 36 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (WSM: +587. 8%, RH: +257. 5%), 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; WSM is a mid-cap quality compounder stock; RH is a small-cap quality compounder stock; ETSY is a small-cap quality compounder stock. WSM pays a dividend while ARHS, RH, ETSY do 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.