National Vision (NASDAQ:EYE) & Arhaus (NASDAQ:ARHS) Head-To-Head Survey

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

Valuation and Earnings

This table compares National Vision and Arhaus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Vision	$1.99 billion	0.67	$29.60 million	$0.61	27.67
Arhaus	$1.38 billion	0.80	$67.26 million	$0.50	15.58

Arhaus has lower revenue, but higher earnings than National Vision. Arhaus is trading at a lower price-to-earnings ratio than National Vision, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

27.9% of Arhaus shares are held by institutional investors. 2.4% of National Vision shares are held by insiders. Comparatively, 1.2% of Arhaus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares National Vision and Arhaus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Vision	2.47%	6.78%	3.01%
Arhaus	4.91%	17.23%	4.94%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Vision	0	4	7	0	2.64
Arhaus	0	5	5	0	2.50

National Vision presently has a consensus target price of $29.82, indicating a potential upside of 76.65%. Arhaus has a consensus target price of $10.22, indicating a potential upside of 31.22%. Given National Vision’s stronger consensus rating and higher probable upside, research analysts clearly believe National Vision is more favorable than Arhaus.

Volatility and Risk

National Vision has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Arhaus has a beta of 2.3, meaning that its stock price is 130% more volatile than the S&P 500.

About National Vision

National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer in the United States. The company operates in two segments, Owned & Host and Legacy. It offers eyeglasses and contact lenses, and optical accessory products; provides eye exams through its America’s Best, Eyeglass World, Vista Optical, Fred Meyer, and Vista Optical military, as well as Vision Center branded stores; and offers health maintenance organization and optometric services. National Vision Holdings, Inc. was founded in 1990 and is headquartered in Duluth, Georgia.

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.