CATO vs. DBI, CTRN, PLCE, TLYS, EXPR, TJX, ROST, ANF, URBN, and AEO
Should you be buying Cato stock or one of its competitors? The main competitors of Cato include Designer Brands (DBI), Citi Trends (CTRN), Children's Place (PLCE), Tilly's (TLYS), Express (EXPR), TJX Companies (TJX), Ross Stores (ROST), Abercrombie & Fitch (ANF), Urban Outfitters (URBN), and American Eagle Outfitters (AEO). These companies are all part of the "apparel retail" industry.
Cato vs.
Cato (NYSE:CATO) and Designer Brands (NYSE:DBI) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, media sentiment, analyst recommendations, earnings, institutional ownership and community ranking.
In the previous week, Designer Brands had 1 more articles in the media than Cato. MarketBeat recorded 3 mentions for Designer Brands and 2 mentions for Cato. Designer Brands' average media sentiment score of 0.67 beat Cato's score of -0.08 indicating that Designer Brands is being referred to more favorably in the news media.
Designer Brands received 493 more outperform votes than Cato when rated by MarketBeat users. However, 59.52% of users gave Cato an outperform vote while only 59.22% of users gave Designer Brands an outperform vote.
Designer Brands has a net margin of -0.07% compared to Cato's net margin of -4.11%. Designer Brands' return on equity of 3.18% beat Cato's return on equity.
Designer Brands has higher revenue and earnings than Cato. Designer Brands is trading at a lower price-to-earnings ratio than Cato, indicating that it is currently the more affordable of the two stocks.
Cato pays an annual dividend of $0.68 per share and has a dividend yield of 18.0%. Designer Brands pays an annual dividend of $0.20 per share and has a dividend yield of 3.5%. Cato pays out -49.3% of its earnings in the form of a dividend. Designer Brands pays out -666.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Cato has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Designer Brands has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500.
Designer Brands has a consensus target price of $5.75, suggesting a potential upside of 0.26%. Given Designer Brands' stronger consensus rating and higher probable upside, analysts clearly believe Designer Brands is more favorable than Cato.
61.1% of Cato shares are owned by institutional investors. Comparatively, 88.8% of Designer Brands shares are owned by institutional investors. 16.6% of Cato shares are owned by insiders. Comparatively, 63.1% of Designer Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Designer Brands beats Cato on 15 of the 19 factors compared between the two stocks.
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New MarketBeat Followers Over Time
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This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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This page (NYSE:CATO) was last updated on 1/20/2025 by MarketBeat.com Staff