RH (RH) vs Winmark Corporation (WINA)

RH and Winmark Corporation are both Specialty Retail companies. RH is the larger, with a market value of $2.3B against $1.1B — 2.2× the size. RH trades at the lower P/E: 21.0× against 26.0×. Winmark Corporation grew revenue faster over the last twelve months: 3.76% against 3.35%. Winmark Corporation has the higher net margin (47.1% vs 3.23%) and the lower return on invested capital (0.00% vs 6.74%). Across the 21 metrics below, Winmark Corporation leads on 11 and RH on 10.

Valuation

Metric RH WINA Specialty Retail median
P/E 21.01 25.97 17.14
P/S 0.68 12.27 0.48
P/B 19.51 n/m 1.71
Price to free cash flow 9.49 25.87 13.04
EV/EBITDA 8.92 20.12 8.92
EV/Sales 1.58 12.71 0.64
Earnings yield 4.76% 3.85% 3.85%
Free cash flow yield 10.53% 3.86% 3.02%

Profitability

Metric RH WINA Specialty Retail median
Gross margin 44.28% 96.66% 37.89%
Operating margin 9.98% 62.33% 3.66%
Net margin 3.23% 47.09% 1.42%
Free cash flow margin 7.26% 47.41% 1.44%
Return on equity 280.72% (109.44%) 2.58%
Return on assets 2.27% 94.36% 0.25%
Return on invested capital 6.74% 0.00% 0.00%

Growth

Metric RH WINA Specialty Retail median
Revenue growth (TTM) 3.35% 3.76% 3.35%
EPS growth (last fiscal year) 74.31% 3.76% —
Revenue growth, 5-year CAGR 3.84% 5.43% 3.70%
Net income growth, 5-year CAGR (14.42%) 6.91% 0.00%

Health

Metric RH WINA Specialty Retail median
Debt to equity 26.57 (1.59) 0.27
Current ratio 1.12 3.75 1.35
Net debt to EBITDA 4.78 0.89 0.24

Dividend

Metric RH WINA Specialty Retail median
Dividend yield — 0.64% 1.73%
Payout ratio 0.00 0.26 0.00

Size

Metric RH WINA Specialty Retail median
Market cap 2.31b 1.07b 348.57m

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