Petco Health and Wellness (NASDAQ:WOOF – Get Free Report) and Arhaus (NASDAQ:ARHS – Get Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.
Profitability
This table compares Petco Health and Wellness and Arhaus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Petco Health and Wellness | -0.47% | -1.71% | -0.37% |
| Arhaus | 5.40% | 19.62% | 5.61% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Petco Health and Wellness and Arhaus, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Petco Health and Wellness | 1 | 8 | 3 | 0 | 2.17 |
| Arhaus | 0 | 11 | 3 | 0 | 2.21 |
Valuation & Earnings
This table compares Petco Health and Wellness and Arhaus”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Petco Health and Wellness | $6.12 billion | 0.15 | -$101.82 million | ($0.10) | -29.60 |
| Arhaus | $1.36 billion | 0.94 | $68.55 million | $0.52 | 17.37 |
Arhaus has lower revenue, but higher earnings than Petco Health and Wellness. Petco Health and Wellness is trading at a lower price-to-earnings ratio than Arhaus, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Petco Health and Wellness has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500. Comparatively, Arhaus has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500.
Insider and Institutional Ownership
27.9% of Arhaus shares are held by institutional investors. 4.4% of Petco Health and Wellness shares are held by insiders. Comparatively, 1.5% of Arhaus shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Arhaus beats Petco Health and Wellness on 10 of the 13 factors compared between the two stocks.
About Petco Health and Wellness
Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.
About Arhaus
Arhaus, Inc. operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It offers lighting products, including various distinct and artistic lighting fixtures comprising chandeliers, pendants, table and floor lamps, and sconces; textile products, such as handcrafted indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, including various wall art to mirrors, vases to candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, e-commerce platform, print and digital media, and in-home designer services. Arhaus, Inc. was founded in 1986 and is headquartered in Boston Heights, Ohio.
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