Arhaus (NASDAQ:ARHS – Get Free Report) and High Tide (NASDAQ:HITI – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
Institutional & Insider Ownership
27.9% of Arhaus shares are owned by institutional investors. Comparatively, 4.5% of High Tide shares are owned by institutional investors. 1.2% of Arhaus shares are owned by company insiders. Comparatively, 12.4% of High Tide shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and price targets for Arhaus and High Tide, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arhaus | 0 | 6 | 4 | 0 | 2.40 |
| High Tide | 1 | 0 | 3 | 0 | 2.50 |
Valuation & Earnings
This table compares Arhaus and High Tide”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arhaus | $1.38 billion | 0.78 | $67.26 million | $0.50 | 15.18 |
| High Tide | $425.10 million | 0.55 | -$36.23 million | ($0.31) | -8.55 |
Arhaus has higher revenue and earnings than High Tide. High Tide is trading at a lower price-to-earnings ratio than Arhaus, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Arhaus and High Tide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arhaus | 4.91% | 17.23% | 4.94% |
| High Tide | -4.73% | 5.13% | 1.55% |
Risk and Volatility
Arhaus has a beta of 2.3, meaning that its stock price is 130% more volatile than the S&P 500. Comparatively, High Tide has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.
Summary
Arhaus beats High Tide on 11 of the 14 factors compared between the two stocks.
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.
About High Tide
High Tide Inc. engages in the cannabis retail business in Canada, the United States, and internationally. The company operates through Retail and Wholesale segments. It operates licensed retail cannabis stores; and provides data analytics services. In addition, the company manufactures and distributes consumption accessories. Further, it sells its products through online sales via e-commerce platform. The company offers its products under the Daily High Club, DankStop, FABCBD, GC, Nuleaf, Smoke Cartel, and Blessed CBD brands. The company was formerly known as High Tide Ventures Inc. and changed its name to High Tide Inc. in October 2018. High Tide Inc. was founded in 2009 and is headquartered in Calgary, Canada.
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