Head-To-Head Analysis: Arhaus (NASDAQ:ARHS) versus National Vision (NASDAQ:EYE)

National Vision (NASDAQ:EYE) and Arhaus (NASDAQ:ARHS) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Institutional and Insider Ownership

27.9% of Arhaus shares are owned by institutional investors. 2.4% of National Vision shares are owned by insiders. Comparatively, 1.2% of Arhaus shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

National Vision has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Arhaus has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500.

Profitability

This table compares National Vision and Arhaus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Vision	2.47%	6.78%	3.01%
Arhaus	4.91%	17.23%	4.94%

Valuation and Earnings

This table compares National Vision and Arhaus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Vision	$1.99 billion	0.70	$29.60 million	$0.61	28.66
Arhaus	$1.38 billion	0.83	$67.26 million	$0.50	16.12

Arhaus has lower revenue, but higher earnings than National Vision. Arhaus is trading at a lower price-to-earnings ratio than National Vision, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for National Vision and Arhaus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Vision	0	4	7	0	2.64
Arhaus	0	7	4	0	2.36

National Vision presently has a consensus price target of $29.82, indicating a potential upside of 70.55%. Arhaus has a consensus price target of $10.12, indicating a potential upside of 25.62%. Given National Vision’s stronger consensus rating and higher probable upside, equities analysts plainly believe National Vision is more favorable than Arhaus.

About National Vision

National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer in the United States. The company operates in two segments, Owned & Host and Legacy. It offers eyeglasses and contact lenses, and optical accessory products; provides eye exams through its America’s Best, Eyeglass World, Vista Optical, Fred Meyer, and Vista Optical military, as well as Vision Center branded stores; and offers health maintenance organization and optometric services. National Vision Holdings, Inc. was founded in 1990 and is headquartered in Duluth, Georgia.

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.