Cato Corporation (CATO)vsUrban Outfitters Inc (URBN)
CATO
Cato Corporation
$3.18
-3.05%
CONSUMER CYCLICAL · Cap: $65.47M
URBN
Urban Outfitters Inc
$71.30
-2.21%
CONSUMER CYCLICAL · Cap: $6.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Urban Outfitters Inc generates 865% more annual revenue ($6.32B vs $654.67M). URBN leads profitability with a 7.5% profit margin vs 0.0%. CATO appears more attractively valued with a PEG of 1.17. URBN earns a higher WallStSmart Score of 63/100 (C+).
CATO
Buy57
out of 100
Grade: C
URBN
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+76.6%
Fair Value
$12.93
Current Price
$3.18
$9.75 discount
Margin of Safety
+2.0%
Fair Value
$71.98
Current Price
$71.30
$0.68 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 181.7% YoY
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
0.5% revenue growth
Grey zone — moderate risk
Smaller company, higher risk/reward
0.0% margin — thin
7.5% margin — thin
Negative free cash flow — burning cash
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 11.4% demonstrates continued momentum. PEG of 1.34 suggests the stock is reasonably priced for its growth.
Bear Case : CATO
The primary concerns for CATO are Revenue Growth, Altman Z-Score, Market Cap. Thin 0.0% margins leave little buffer for downturns.
Bear Case : URBN
The primary concerns for URBN are Profit Margin, Free Cash Flow.
Key Dynamics to Monitor
URBN carries more volatility with a beta of 1.22 — expect wider price swings.
URBN is growing revenue faster at 11.4% — sustainability is the question.
CATO generates stronger free cash flow (7M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
URBN scores higher overall (63/100 vs 57/100) and 11.4% revenue growth. CATO offers better value entry with a 76.6% margin of safety. 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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