Cato Corporation (CATO)vsRoss Stores Inc (ROST)
CATO
Cato Corporation
$2.77
-5.14%
CONSUMER CYCLICAL · Cap: $69.04M
ROST
Ross Stores Inc
$216.03
+0.11%
CONSUMER CYCLICAL · Cap: $70.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Ross Stores Inc generates 3396% more annual revenue ($22.75B vs $650.83M). ROST leads profitability with a 9.4% profit margin vs -2.9%. CATO appears more attractively valued with a PEG of 1.17. ROST earns a higher WallStSmart Score of 56/100 (C).
CATO
Buy53
out of 100
Grade: C-
ROST
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CATO.
Margin of Safety
-15.8%
Fair Value
$166.32
Current Price
$216.03
$49.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 63.3% YoY
Every $100 of equity generates 37 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
4.7% revenue growth
Smaller company, higher risk/reward
Operating margin of 2.9%
ROE of -10.3% — below average capital efficiency
Premium valuation, high expectations priced in
Trading at 11.2x book value
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CATO
The strongest argument for CATO centers on Price/Book, EPS Growth. PEG of 1.17 suggests the stock is reasonably priced for its growth.
Bull Case : ROST
The strongest argument for ROST centers on Return on Equity, Altman Z-Score, Market Cap. Revenue growth of 12.2% demonstrates continued momentum.
Bear Case : CATO
The primary concerns for CATO are Revenue Growth, Market Cap, Operating Margin.
Bear Case : ROST
The primary concerns for ROST are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
CATO profiles as a turnaround stock while ROST is a value play — different risk/reward profiles.
ROST carries more volatility with a beta of 0.98 — expect wider price swings.
ROST is growing revenue faster at 12.2% — sustainability is the question.
ROST generates stronger free cash flow (921M), providing more financial flexibility.
Bottom Line
ROST scores higher overall (56/100 vs 53/100) and 12.2% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cato Corporation
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The Cato Corporation is a specialty clothing and fashion accessories retailer primarily in the southeastern United States. The company is headquartered in Charlotte, North Carolina.
Ross Stores Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.
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