WSM vs RH Stock Comparison: AI Score, Valuation, Performance and Upside
WSM (Williams-Sonoma) and RH are both premium home furnishings companies, but RH has dramatically repositioned itself as an aspirational luxury lifestyle brand competing at the high end, while Williams-Sonoma operates a multi-brand portfolio spanning premium to accessible premium price points with outstanding DTC capabilities. RH has achieved higher valuation multiples at times reflecting its luxury brand premium; WSM has more consistent multi-brand diversification.
WSM vs RH is premium multi-brand home furnishings with superior DTC execution (Williams-Sonoma) versus aspiring luxury lifestyle brand transformation at the high end of the market (RH's gallery experience and luxury positioning) — housing market sensitivity but different brand elevation trajectories.
WSM holds the edge across 3 of 5 key metrics in this comparison. WSM has delivered stronger 1-year price return (+11.66% vs -45.03%), though RH has the better forward P/E setup (16.26x vs 21.12x for WSM). WSM leads on both revenue growth (6.70%) and operating margin (17.27%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for RH (+20.57%) than for WSM (+11.90%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want premium home furnishings multi-brand exposure (Pottery Barn, West Elm, Williams-Sonoma) with industry-leading DTC e-commerce penetration and consistent margin performance
- Value Williams-Sonoma's B2B commercial furnishings business as diversifying revenue beyond consumer retail cycles
- Prefer multi-brand diversification versus concentrated luxury brand risk from a single brand's positioning success
- Want a luxury brand transformation play where Gary Friedman's vision has systematically elevated RH from furniture retailer to aspirational lifestyle brand competing at the high end of home furnishings
- Value the RH Members program and gallery experience as creating a defensible luxury moat that commodity furniture retailers cannot replicate
- Accept the housing market sensitivity and key-person risk in exchange for the potential for significant multiple expansion if RH successfully expands its luxury brand to hospitality and other categories
| Metric | WSM | RH |
|---|---|---|
| AI scorei | 62.5 | 39.2 |
| AI ranki | #118 | #1271 |
| Latest closei | $218.92 | $126.82 |
| 1M returni | -9.31% | -25.86% |
| 6M returni | +19.90% | -5.72% |
| 1Y returni | +11.66% | -45.03% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | WSM | RH |
|---|---|---|
| 1Y ago | $11.13K (+11.3%) started 2025-09-17 | $5.53K (-44.7%) started 2025-09-17 |
| 5Y ago | $27.98K (+179.8%) started 2021-09-20 | $1.89K (-81.1%) started 2021-09-17 |
| 10Y ago | $137.49K (+1274.9%) started 2016-09-19 | $37.02K (+270.2%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | WSM | RH |
|---|---|---|
| Market capi | $26.11B | $2.8B |
| Trailing P/Ei | 22.74 | 28.45 |
| Forward P/Ei | 21.12 | 16.26 |
| Price/Salesi | N/A | N/A |
| EV/Revenuei | 3.33 | 1.97 |
| Analyst targeti | $248.10 | $178.06 |
| Target upsidei | +11.90% | +20.57% |
| Metric | WSM | RH |
|---|---|---|
| Revenue growthi | 6.70% | -1.70% |
| Earnings growthi | 42.00% | N/A |
| EPS growthi | +42.00% | N/A |
| FCF margini | +13.36% | +8.33% |
| Operating margini | 17.27% | 0.32% |
| Profit margini | 14.73% | 3.01% |
| ROIC proxyi | 54.96% | N/A |
| Return on equityi | 54.96% | N/A |
| Dividend yieldi | 1.37% | N/A |
| Payout ratioi | 29.13% | 0.00% |
| Dividend growth streaki | No increase yet | N/A |
| Betai | 1.47 | 1.87 |
| Debt/equityi | 71.37 | 7060.08 |
| Current ratioi | 1.45 | 1.13 |
| Quick ratioi | 0.62 | 0.20 |
Over the past year, WSM and RH have moved moderately in the same direction (correlation of 0.62), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | WSM | RH |
|---|---|---|---|
| 1Y | Growthi | +11.35% | -44.74% |
| CAGRi | +11.36% | -44.79% | |
| Volatilityi | 33.47% | 60.74% | |
| Sharpe ratioi | 0.35 | -0.75 | |
| Sortino ratioi | 0.54 | -1.02 | |
| Max drawdowni | 23.58% | 51.66% | |
| Current drawdowni | 13.05% | 45.68% | |
| Avg drawdowni | 7.79% | 29.00% | |
| Ulcer Indexi | 9.78% | 31.59% | |
| Max daily dropi | 6.04% | 19.29% | |
| Max wkly dropi | 9.30% | 20.23% | |
| 5Y | Growthi | +158.42% | -81.13% |
| CAGRi | +20.95% | -28.37% | |
| Volatilityi | 44.49% | 62.55% | |
| Sharpe ratioi | 0.55 | -0.29 | |
| Sortino ratioi | 0.84 | -0.41 | |
| Max drawdowni | 51.92% | 83.98% | |
| Current drawdowni | 13.05% | 82.00% | |
| Avg drawdowni | 20.98% | 59.85% | |
| Ulcer Indexi | 26.07% | 62.01% | |
| Max daily dropi | 15.85% | 40.09% | |
| Max wkly dropi | 17.94% | 38.63% | |
| 10Y | Growthi | +983.77% | +270.17% |
| CAGRi | +26.93% | +13.99% | |
| Volatilityi | 44.15% | 64.13% | |
| Sharpe ratioi | 0.66 | 0.45 | |
| Sortino ratioi | 1.01 | 0.69 | |
| Max drawdowni | 59.71% | 84.72% | |
| Current drawdowni | 13.05% | 82.83% | |
| Avg drawdowni | 15.74% | 37.40% | |
| Ulcer Indexi | 20.84% | 46.86% | |
| Max daily dropi | 21.66% | 40.09% | |
| Max wkly dropi | 39.86% | 38.63% |
| Category | WSM | RH |
|---|---|---|
| Company | Williams-Sonoma, Inc. | RH (formerly Restoration Hardware) |
| Sector | Consumer Cyclical | Consumer Cyclical |
| Industry | Specialty Retail | Specialty Retail |
| Core business | Williams-Sonoma operates a portfolio of premium home brands: Williams-Sonoma (cookware and kitchen), Pottery Barn (casual home furnishings), Pottery Barn Kids, West Elm (modern design), and Rejuvenation (hardware and lighting) — selling primarily through DTC (e-commerce and catalog) with a smaller physical store footprint. | RH (formerly Restoration Hardware) has transformed from a furniture retailer into a luxury lifestyle brand — offering premium home furnishings through its large-format galleries (not stores), RH Members program, RH Hospitality (cafes and restaurants within galleries), and expanding into hospitality, jet services, and other luxury lifestyle extensions. |
| Investor focus | Investors track Williams-Sonoma's comparable brand revenue growth, DTC penetration (over 65%+ of revenue online), operating margin, and the performance of each brand (Williams-Sonoma, Pottery Barn, West Elm) through housing and consumer spending cycles. | Investors track RH's demand revenue (best indicator excluding timing differences), gross margin, member count, RH Modern and RH Contemporary collections' performance, and CEO Gary Friedman's execution of the luxury brand elevation strategy. |
- Industry-leading DTC (direct-to-consumer) e-commerce penetration — Williams-Sonoma generates the vast majority of its revenue directly to consumers online without dependence on third-party retail channels
- Multi-brand portfolio diversifies across price points (West Elm is more accessible than Pottery Barn, Pottery Barn is less expensive than Williams-Sonoma flagship) and consumer occasions
- B2B (Business-to-Business) contract furnishings business provides commercial revenue from hotels, restaurants, and offices that supplements retail seasonality
- RH has successfully repositioned from furniture retailer to aspirational luxury lifestyle brand — competing more with Hermès and LVMH than traditional furniture retailers, commanding premium pricing and margins
- RH Members program ($175/year) generates upfront membership revenue and creates loyal customers who commit to purchasing within the RH ecosystem at member prices
- Gallery format (large, experiential spaces often in converted historic buildings) creates aspirational brand presentation that differentiates RH from traditional furniture showrooms
- Housing market sensitivity — WSM's biggest revenue drivers are home purchases and renovations; mortgage rate increases and housing slowdowns reduce demand for home furnishings
- Williams-Sonoma and Pottery Barn are relatively mature brands in the U.S. — growth depends on West Elm expansion, international, and B2B
- Home furnishings market tends to correlate with housing activity — post-COVID normalization of housing market reduced the extraordinary pandemic-era demand that drove WSM's best earnings years
- RH's luxury brand elevation has been highly dependent on CEO Gary Friedman's vision and leadership — succession and key-person risk is unusually concentrated in one executive
- Housing market sensitivity — even luxury home furnishings buyers slow purchases when housing market activity drops, and RH experienced significant revenue decline in the 2022-2023 housing market downturn
- RH's expansion into hospitality, jet services, and other luxury lifestyle extensions is speculative and capital-intensive — these adjacencies must generate returns that justify the investment
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