Arhaus (NASDAQ:ARHS – Get Free Report) and CarParts.com (NASDAQ:PRTS – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.
Volatility & Risk
Arhaus has a beta of 2.29, suggesting that its share price is 129% more volatile than the S&P 500. Comparatively, CarParts.com has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.
Valuation & Earnings
This table compares Arhaus and CarParts.com”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 | 1.03 | $67.26 million | $0.50 | 20.05 |
| CarParts.com | $547.53 million | 0.12 | -$50.44 million | ($4.33) | -1.83 |
Arhaus has higher revenue and earnings than CarParts.com. CarParts.com is trading at a lower price-to-earnings ratio than Arhaus, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings for Arhaus and CarParts.com, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arhaus | 0 | 4 | 5 | 1 | 2.70 |
| CarParts.com | 1 | 1 | 0 | 0 | 1.50 |
Arhaus presently has a consensus target price of $10.22, suggesting a potential upside of 1.99%. CarParts.com has a consensus target price of $6.00, suggesting a potential downside of 24.09%. Given Arhaus’ stronger consensus rating and higher possible upside, equities analysts clearly believe Arhaus is more favorable than CarParts.com.
Institutional & Insider Ownership
27.9% of Arhaus shares are held by institutional investors. Comparatively, 75.3% of CarParts.com shares are held by institutional investors. 1.2% of Arhaus shares are held by company insiders. Comparatively, 6.6% of CarParts.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Arhaus and CarParts.com’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% |
| CarParts.com | -5.35% | -47.19% | -14.52% |
Summary
Arhaus beats CarParts.com on 13 of the 15 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 CarParts.com
CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories. The company sells its products to individual customers through its flagship website www.carparts.com and app; online marketplaces, including third-party auction sites and shopping portals; and auto parts wholesale distributors. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.
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