Cato Corporation (CATO)vsUrban Outfitters Inc (URBN)
CATO
Cato Corporation
$2.77
-5.14%
CONSUMER CYCLICAL · Cap: $69.04M
URBN
Urban Outfitters Inc
$61.47
-0.36%
CONSUMER CYCLICAL · Cap: $5.53B
Smart Verdict
WallStSmart Research — data-driven comparison
Urban Outfitters Inc generates 847% more annual revenue ($6.17B vs $650.83M). URBN leads profitability with a 7.5% profit margin vs -2.9%. URBN appears more attractively valued with a PEG of 1.01. URBN earns a higher WallStSmart Score of 62/100 (C+).
CATO
Buy53
out of 100
Grade: C-
URBN
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CATO.
Margin of Safety
-104.9%
Fair Value
$34.41
Current Price
$61.47
$27.06 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 63.3% YoY
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
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
7.5% margin — thin
Earnings declined 17.4%
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 : URBN
The strongest argument for URBN centers on Altman Z-Score, P/E Ratio, Price/Book. Revenue growth of 10.1% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bear Case : CATO
The primary concerns for CATO are Revenue Growth, Market Cap, Operating Margin.
Bear Case : URBN
The primary concerns for URBN are Profit Margin, EPS Growth.
Key Dynamics to Monitor
CATO profiles as a turnaround stock while URBN is a value play — different risk/reward profiles.
URBN carries more volatility with a beta of 1.21 — expect wider price swings.
URBN is growing revenue faster at 10.1% — sustainability is the question.
URBN generates stronger free cash flow (217M), providing more financial flexibility.
Bottom Line
URBN scores higher overall (62/100 vs 53/100) and 10.1% 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.
Urban Outfitters Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Urban Outfitters, Inc. is engaged in the retail and wholesale of general consumer products. The company is headquartered in Philadelphia, Pennsylvania.
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