Which Is a Better Investment, Wayfair Inc. or Williams-Sonoma, Inc. Stock?

By Omar Beirat
April 01, 2026
Large versus logo comparing two stocks in the same industry
Featured Tickers:
W WSM

Sifting through countless of stocks in the Specialty Retail industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Wayfair Inc., Williams-Sonoma or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Wayfair Inc., Williams-Sonoma and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Wayfair Inc., Williams-Sonoma and Inc.

Wayfair Inc. engages in the e-commerce business in the United States and internationally. It provides online selections of furniture, décor, housewares, and home improvement products through its sites comprising Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional. The company offers its products under the Three Posts and Mercury Row brands. Wayfair Inc. was founded in 2002 and is headquartered in Boston, Massachusetts.

Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home the United States and internationally. The company provides cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks. It offers home furnishings, home decor products and accessories, bedding, lighting, rugs, table essentials, kids accessories, made-to-order lighting, hardware, personalized products, custom gifts, and vintage-inspired heirloom products. It offers its products under the Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow brand names. The company markets its products through e-commerce websites, direct-mail catalogs, and retail stores. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.

Latest Specialty Retail and Wayfair Inc., Williams-Sonoma, Inc. Stock News

As of March 31, 2026, Wayfair Inc. had a $9.8 billion market capitalization, compared to the Specialty Retail median of $818.3 million. Wayfair Inc.’s stock is NA in 2026, NA in the previous five trading days and up 122.19% in the past year.

Currently, Wayfair Inc. does not have a price-earnings ratio. Wayfair Inc.’s trailing 12-month revenue is $12.5 billion with a -2.5% net profit margin. Year-over-year quarterly sales growth most recently was 6.9%. Analysts expect adjusted earnings to reach $2.884 per share for the current fiscal year. Wayfair Inc. does not currently pay a dividend.

Currently, Williams-Sonoma, Inc.’s price-earnings ratio is 20.6. Williams-Sonoma, Inc.’s trailing 12-month revenue is $7.8 billion with a 13.9% net profit margin. Year-over-year quarterly sales growth most recently was -4.3%. Analysts expect adjusted earnings to reach $9.261 per share for the current fiscal year. Williams-Sonoma, Inc. currently has a 1.7% dividend yield.

How We Compare Wayfair Inc., Williams-Sonoma and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Wayfair Inc., Williams-Sonoma and Inc.’s stock grades to see how they measure up against one another.

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Wayfair Inc., Williams-Sonoma and Inc. Growth Grades

Company Ticker Growth
Wayfair Inc. W F
Williams-Sonoma, Inc. WSM C

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Wayfair Inc. has a Growth Score of 5, which is Very Weak. Williams-Sonoma, Inc. has a Growth Score of 56, which is Average.

The Growth Stock Winner: No Clear Winner

Neither Wayfair Inc., Williams-Sonoma or Inc. has a high enough Growth Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Wayfair Inc., Williams-Sonoma or Inc. is the better investment when it comes to sustainable growth.

Wayfair Inc., Williams-Sonoma and Inc.’s Quality Grades

Company Ticker Quality
Wayfair Inc. W B
Williams-Sonoma, Inc. WSM A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Wayfair Inc. has a Quality Score of 62, which is Strong. Williams-Sonoma, Inc. has a Quality Score of 92, which is Very Strong.

The Quality Grade Winner: Williams-Sonoma, Inc.

As you can clearly see from the Quality Grade breakdown above, Williams-Sonoma, Inc. has a better overall quality grade than Wayfair Inc.. For investors who are looking for companies with higher quality than others in the same industry, Williams-Sonoma, Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Wayfair Inc., Williams-Sonoma and Inc.’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Wayfair Inc. W C
Williams-Sonoma, Inc. WSM B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Wayfair Inc. has a Earnings Estimate Score of 53, which is Neutral. Williams-Sonoma, Inc. has a Earnings Estimate Score of 64, which is Positive.

The Earnings Estimate Revisions Grade Winner: Williams-Sonoma, Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Williams-Sonoma, Inc. has a better Earnings Estimate Revisions Grade than Wayfair Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Williams-Sonoma, Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other Wayfair Inc., Williams-Sonoma and Inc. Grades

In addition to Quality, Growth and Estimate Revisions, A+ Investor also provides grades for Value and Momentum.

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Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Wayfair Inc., Williams-Sonoma and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Wayfair Inc., Williams-Sonoma or Inc. Stock?

Overall, Wayfair Inc. stock has a Growth Score of 5, Estimate Revisions Score of 53 and Quality Score of 62.

Williams-Sonoma, Inc. stock has a Growth Score of 56, Estimate Revisions Score of 64 and Quality Score of 92.

Comparing Wayfair Inc., Williams-Sonoma and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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