Cato Corporation (CATO)vsRoss Stores Inc (ROST)
CATO
Cato Corporation
$2.41
-0.21%
CONSUMER CYCLICAL · Cap: $47.99M
ROST
Ross Stores Inc
$230.74
+2.33%
CONSUMER CYCLICAL · Cap: $74.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Ross Stores Inc generates 3708% more annual revenue ($24.51B vs $643.67M). ROST leads profitability with a 10.8% profit margin vs -0.9%. CATO appears more attractively valued with a PEG of 1.17. ROST earns a higher WallStSmart Score of 64/100 (C+).
CATO
Hold40
out of 100
Grade: F
ROST
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+75.6%
Fair Value
$12.36
Current Price
$2.41
$9.95 discount
Margin of Safety
-4.8%
Fair Value
$183.73
Current Price
$230.74
$47.01 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 39 in profit
Earnings expanding 70.5% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Smaller company, higher risk/reward
ROE of -3.7% — below average capital efficiency
Revenue declined 6.2%
Earnings declined 83.3%
Expensive relative to growth rate
Moderate valuation
Trading at 10.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : CATO
The strongest argument for CATO centers on Price/Book. 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, EPS Growth, Altman Z-Score. Revenue growth of 13.3% demonstrates continued momentum.
Bear Case : CATO
The primary concerns for CATO are Market Cap, Return on Equity, Revenue Growth.
Bear Case : ROST
The primary concerns for ROST are PEG Ratio, P/E Ratio, Price/Book.
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 0.86 — expect wider price swings.
ROST is growing revenue faster at 13.3% — sustainability is the question.
ROST generates stronger free cash flow (624M), providing more financial flexibility.
Bottom Line
ROST scores higher overall (64/100 vs 40/100) and 13.3% revenue growth. CATO offers better value entry with a 75.6% margin of safety. Both earn "Buy" and "Hold" 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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