Cato (CATO) Competitors

Cato (NYSE:CATO) and Designer Brands (NYSE:DBI) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their media sentiment, institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Does the media prefer CATO or DBI?

In the previous week, Designer Brands had 1 more articles in the media than Cato. MarketBeat recorded 11 mentions for Designer Brands and 10 mentions for Cato. Cato's average media sentiment score of 0.05 beat Designer Brands' score of -0.08 indicating that Cato is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Cato	1 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	1 Negative mention(s)	2 Very Negative mention(s)	Neutral
Designer Brands	0 Very Positive mention(s)	2 Positive mention(s)	7 Neutral mention(s)	0 Negative mention(s)	2 Very Negative mention(s)	Neutral

Which has more volatility and risk, CATO or DBI?

Cato has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Designer Brands has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500.

Do insiders and institutionals believe in CATO or DBI?

61.1% of Cato shares are owned by institutional investors. Comparatively, 88.8% of Designer Brands shares are owned by institutional investors. 18.1% of Cato shares are owned by company insiders. Comparatively, 52.9% of Designer Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Which has better valuation & earnings, CATO or DBI?

Designer Brands has higher revenue and earnings than Cato. Designer Brands is trading at a lower price-to-earnings ratio than Cato, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cato	$649.81M	0.09	-$18.06M	-$1.35	-2.09
Designer Brands	$3.01B	0.05	-$10.55M	-$0.68	-4.81

Do analysts prefer CATO or DBI?

Designer Brands has a consensus price target of $3.50, indicating a potential upside of 7.03%. Given Designer Brands' stronger consensus rating and higher possible upside, analysts clearly believe Designer Brands is more favorable than Cato.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cato	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00
Designer Brands	0 Sell rating(s)	3 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

Is CATO or DBI more profitable?

Designer Brands has a net margin of -0.97% compared to Cato's net margin of -4.02%. Designer Brands' return on equity of -0.84% beat Cato's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Cato	-4.02%	-14.71%	-5.80%
Designer Brands	-0.97%	-0.84%	-0.12%

Summary

Designer Brands beats Cato on 12 of the 15 factors compared between the two stocks.