Cato Corporation (CATO)vsUrban Outfitters Inc (URBN)
CATO
Cato Corporation
$2.41
-0.21%
CONSUMER CYCLICAL · Cap: $47.99M
URBN
Urban Outfitters Inc
$78.58
+3.94%
CONSUMER CYCLICAL · Cap: $6.80B
Smart Verdict
WallStSmart Research — data-driven comparison
Urban Outfitters Inc generates 906% more annual revenue ($6.47B vs $643.67M). URBN leads profitability with a 8.8% profit margin vs -0.9%. CATO appears more attractively valued with a PEG of 1.17. URBN earns a higher WallStSmart Score of 71/100 (B).
CATO
Hold40
out of 100
Grade: F
URBN
Strong Buy71
out of 100
Grade: B
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
+4.0%
Fair Value
$73.45
Current Price
$78.58
$5.13 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 75.9% YoY
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
ROE of -3.7% — below average capital efficiency
Revenue declined 6.2%
Earnings declined 83.3%
No major concerns identified
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 : URBN
The strongest argument for URBN centers on EPS Growth, Altman Z-Score, P/E Ratio. Revenue growth of 10.4% demonstrates continued momentum. PEG of 1.35 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 : URBN
No major red flags identified for URBN, but monitor valuation.
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 1.26 — expect wider price swings.
URBN is growing revenue faster at 10.4% — sustainability is the question.
URBN generates stronger free cash flow (301M), providing more financial flexibility.
Bottom Line
URBN scores higher overall (71/100 vs 40/100) and 10.4% revenue growth. CATO offers better value entry with a 75.6% 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.
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.
Compare with Other APPAREL RETAIL Stocks
Want to dig deeper into these stocks?