WallStSmart

Cato Corporation (CATO)vsSea Ltd (SE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sea Ltd generates 3408% more annual revenue ($22.94B vs $653.81M). SE leads profitability with a 6.9% profit margin vs -0.9%. SE appears more attractively valued with a PEG of 0.59. SE earns a higher WallStSmart Score of 70/100 (B-).

CATO

Hold

50

out of 100

Grade: D+

Growth: 4.7Profit: 2.0Value: 7.0Quality: 5.0

SE

Strong Buy

70

out of 100

Grade: B-

Growth: 10.0Profit: 6.0Value: 7.3Quality: 5.5
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CATOUndervalued (+85.5%)

Margin of Safety

+85.5%

Fair Value

$20.89

Current Price

$2.89

$18.00 discount

UndervaluedFair: $20.89Overvalued
SEUndervalued (+53.2%)

Margin of Safety

+53.2%

Fair Value

$244.86

Current Price

$84.88

$159.98 discount

UndervaluedFair: $244.86Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CATO2 strengths · Avg: 10.0/10
Price/BookValuation
0.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
6325.0%10/10

Earnings expanding 6325.0% YoY

SE4 strengths · Avg: 9.3/10
Revenue GrowthGrowth
38.4%10/10

Revenue surging 38.4% year-over-year

EPS GrowthGrowth
58.2%10/10

Earnings expanding 58.2% YoY

Market CapQuality
$51.99B9/10

Large-cap with strong market position

PEG RatioValuation
0.598/10

Growing faster than its price suggests

Areas to Watch

CATO4 concerns · Avg: 2.3/10
Market CapQuality
$56.86M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3.7%2/10

ROE of -3.7% — below average capital efficiency

Revenue GrowthGrowth
-4.0%2/10

Revenue declined 4.0%

Free Cash FlowQuality
$-5.58M2/10

Negative free cash flow — burning cash

SE3 concerns · Avg: 3.0/10
P/E RatioValuation
33.7x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Free Cash FlowQuality
$02/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull 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 : SE

The strongest argument for SE centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 38.4% demonstrates continued momentum. PEG of 0.59 suggests the stock is reasonably priced for its growth.

Bear Case : CATO

The primary concerns for CATO are Market Cap, Return on Equity, Revenue Growth.

Bear Case : SE

The primary concerns for SE are P/E Ratio, Profit Margin, Free Cash Flow.

Key Dynamics to Monitor

CATO profiles as a turnaround stock while SE is a hypergrowth play — different risk/reward profiles.

SE carries more volatility with a beta of 1.70 — expect wider price swings.

SE is growing revenue faster at 38.4% — sustainability is the question.

Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SE scores higher overall (70/100 vs 50/100) and 38.4% revenue growth. CATO offers better value entry with a 85.5% margin of safety. Both earn "Strong 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.

Sea Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.

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