ODP (NASDAQ:ODP) vs. Arhaus (NASDAQ:ARHS) Head-To-Head Survey

ODP (NASDAQ:ODP) and Arhaus (NASDAQ:ARHS) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Risk and Volatility

ODP has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Arhaus has a beta of 2.52, suggesting that its stock price is 152% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ODP	0.39%	11.22%	2.58%
Arhaus	5.40%	19.62%	5.61%

Earnings and Valuation

This table compares ODP and Arhaus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ODP	$6.53 billion	0.13	-$3.00 million	($0.35)	-79.63
Arhaus	$1.27 billion	1.00	$68.55 million	$0.52	17.37

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

Insider & Institutional Ownership

99.6% of ODP shares are held by institutional investors. Comparatively, 27.9% of Arhaus shares are held by institutional investors. 3.6% of ODP shares are held by insiders. Comparatively, 1.5% of Arhaus shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for ODP and Arhaus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ODP	1	2	0	0	1.67
Arhaus	0	11	3	0	2.21

ODP presently has a consensus target price of $28.00, indicating a potential upside of 0.47%. Arhaus has a consensus target price of $11.11, indicating a potential upside of 23.05%. Given Arhaus’ stronger consensus rating and higher probable upside, analysts clearly believe Arhaus is more favorable than ODP.

Summary

Arhaus beats ODP on 10 of the 14 factors compared between the two stocks.

About ODP

The ODP Corporation provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates through four divisions: ODP Business Solutions, Office Depot, Veyer, and Varis. The ODP Business Solutions division offers adjacency products, including cleaning, janitorial, and breakroom supplies, office furniture, technology products; and copy and print services through sales force, catalogs, telesales, and through Internet websites. This segment also engages in office supply distribution business. The Office Depot division sells office supplies, technology products and solutions, business machines and related supplies, cleaning, breakroom and facilities products, personal protective equipment, and office furniture; and offers business services, including copying, printing, digital imaging, mailing, shipping, and technology support services through a fully integrated omni-channel platform of 980 Office Depot and OfficeMax retail stores, and through www.officedepot.com. The Veyer division engages in supply chain, distribution, procurement, and global sourcing operations. The Varis division operates tech-enabled B2B indirect procurement marketplace, where buyers and suppliers to transact through the platform's consumer-like buying experience, advanced spend management tools, network of suppliers, and technology capabilities. The company offers its products under various brands, including Office Depot, OfficeMax, and Grand&Toy, as well as others. The ODP Corporation was incorporated in 1986 and is headquartered in Boca Raton, Florida.

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.