Arhaus (NASDAQ:ARHS – Get Free Report) and Signet Jewelers (NYSE:SIG – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Arhaus and Signet Jewelers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arhaus | 0 | 6 | 4 | 0 | 2.40 |
| Signet Jewelers | 0 | 7 | 5 | 0 | 2.42 |
Arhaus presently has a consensus target price of $9.92, suggesting a potential upside of 27.30%. Signet Jewelers has a consensus target price of $125.56, suggesting a potential upside of 25.07%. Given Arhaus’ higher probable upside, analysts clearly believe Arhaus is more favorable than Signet Jewelers.
Volatility & Risk
Valuation & Earnings
This table compares Arhaus and Signet Jewelers”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arhaus | $1.41 billion | 0.78 | $67.26 million | $0.50 | 15.58 |
| Signet Jewelers | $6.82 billion | 0.58 | $294.40 million | $8.68 | 11.57 |
Signet Jewelers has higher revenue and earnings than Arhaus. Signet Jewelers 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 Signet Jewelers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arhaus | 4.91% | 17.23% | 4.94% |
| Signet Jewelers | 5.19% | 23.28% | 7.61% |
Institutional & Insider Ownership
27.9% of Arhaus shares are held by institutional investors. 1.2% of Arhaus shares are held by insiders. Comparatively, 1.2% of Signet Jewelers shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Signet Jewelers beats Arhaus on 8 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 Signet Jewelers
Signet Jewelers Limited operates as a diamond jewelry retailer. It operates through three segments: North America, International, and Other. The North America segment operates jewelry stores in jewelry stores in malls, mall-based kiosks, and off-mall locations in the United States and Canada primarily under the Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria Of Jewelry, Jared Vault, Zales Outlet, Zales Jewelers, Diamonds Direct, James Allen, Banter by Piercing Pagoda, and Peoples Jewellers names, as well as operates online through its digital banners, James Allen and Blue Nile. This segment also engages in jewelry subscription business. The International segment operates stores in shopping malls and off-mall locations primarily under the H.Samuel and Ernest Jones brands in the United Kingdom, Republic of Ireland, and Channel Islands. The Other segment is involved in the purchase and conversion of rough diamonds to polished stones, as well as the provision of diamond polishing services. Signet Jewelers Limited is based in Hamilton, Bermuda.
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