Contrasting At Home Group (HOME) & RH (RH)

At Home Group (NYSE: HOME) and RH (NYSE:RH) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Valuation & Earnings

This table compares At Home Group and RH’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
At Home Group $765.64 million 2.59 $27.06 million $0.60 54.57
RH $2.13 billion 0.96 $5.40 million $0.42 228.26

At Home Group has higher earnings, but lower revenue than RH. At Home Group is trading at a lower price-to-earnings ratio than RH, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

24.7% of At Home Group shares are owned by institutional investors. Comparatively, 95.7% of RH shares are owned by institutional investors. 7.1% of At Home Group shares are owned by company insiders. Comparatively, 18.8% of RH shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares At Home Group and RH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
At Home Group 4.18% 7.53% 3.21%
RH 0.45% 20.04% 3.80%

Volatility & Risk

At Home Group has a beta of 3.77, indicating that its stock price is 277% more volatile than the S&P 500. Comparatively, RH has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for At Home Group and RH, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
At Home Group 0 2 5 0 2.71
RH 1 11 5 0 2.24

At Home Group presently has a consensus price target of $28.50, indicating a potential downside of 12.95%. RH has a consensus price target of $79.24, indicating a potential downside of 17.35%. Given At Home Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe At Home Group is more favorable than RH.

Summary

At Home Group beats RH on 7 of the 13 factors compared between the two stocks.

At Home Group Company Profile

At Home Group, Inc. is a home decor superstore. The Company is focused on providing a range of assortment of products for any room, in any style, for any budget. As of July 30, 2016, the Company offered over 50,000 stock keeping units (SKUs) throughout its stores. As of July 30, 2016, the Company’s store base is consisted of 115 format stores across 29 states and 65 markets, averaging approximately 120,000 square feet per store.

RH Company Profile

RH, formerly Restoration Hardware Holdings, Inc., is a retailer in the home furnishings marketplace. As of January 28, 2017, the Company had two segments: RH Segment and Waterworks. It offers merchandise assortments across a range of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, tableware, and child and teen furnishings. The Company classifies its sales into furniture and non-furniture product lines. The Furniture category includes both indoor and outdoor furniture. The Non-furniture category includes lighting, textiles, fittings, fixtures, surfaces, accessories and home decor. The Company’s business is integrated across its channels of distribution consisting of its stores, Source Books and Websites. The Company also owns a controlling interest in Design Investors WW Acquisition Company, LLC, which owns the business operating under the name ‘Waterworks’.

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