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

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

Analyst Recommendations

This is a breakdown of recent ratings for High Tide and Arhaus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
High Tide	1	0	3	0	2.50
Arhaus	0	6	4	0	2.40

High Tide currently has a consensus target price of $5.62, indicating a potential upside of 118.02%. Arhaus has a consensus target price of $9.92, indicating a potential upside of 27.30%. Given High Tide’s stronger consensus rating and higher probable upside, analysts clearly believe High Tide is more favorable than Arhaus.

Profitability

This table compares High Tide and Arhaus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
High Tide	-4.73%	5.13%	1.55%
Arhaus	4.91%	17.23%	4.94%

Volatility & Risk

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

Insider and Institutional Ownership

4.5% of High Tide shares are owned by institutional investors. Comparatively, 27.9% of Arhaus shares are owned by institutional investors. 12.4% of High Tide shares are owned by company insiders. Comparatively, 1.2% of Arhaus shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares High Tide and Arhaus”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
High Tide	$425.10 million	0.54	-$36.23 million	($0.23)	-11.22
Arhaus	$1.38 billion	0.80	$67.26 million	$0.50	15.58

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 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.

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.