Arhaus (NASDAQ:ARHS) & High Tide (NASDAQ:HITI) Financial Survey

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

Risk & Volatility

Arhaus has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500. Comparatively, High Tide has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

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	-6.62%	3.59%	1.24%

Institutional & Insider Ownership

27.9% of Arhaus shares are held by institutional investors. Comparatively, 4.5% of High Tide shares are held by institutional investors. 1.2% of Arhaus shares are held by insiders. Comparatively, 12.4% of High Tide shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Arhaus and High Tide, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arhaus	0	7	4	0	2.36
High Tide	1	0	3	0	2.50

Arhaus presently has a consensus price target of $10.12, indicating a potential upside of 25.00%. High Tide has a consensus price target of $5.62, indicating a potential upside of 122.33%. Given High Tide’s stronger consensus rating and higher probable upside, analysts clearly believe High Tide is more favorable than Arhaus.

Earnings and Valuation

This table compares Arhaus and High Tide”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arhaus	$1.38 billion	0.83	$67.26 million	$0.50	16.20
High Tide	$425.10 million	0.53	-$36.23 million	($0.31)	-8.16

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.

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.