Cato (CATO) Competitors

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

Is DBI or CATO more profitable?

Designer Brands has a net margin of -0.07% compared to Cato's net margin of -4.11%. Designer Brands' return on equity of 3.18% beat Cato's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Designer Brands	-0.07%	3.18%	0.52%
Cato	-4.11%	-14.41%	-5.95%

Is DBI or CATO a better dividend stock?

Designer Brands pays an annual dividend of $0.20 per share and has a dividend yield of 8.0%. Cato pays an annual dividend of $0.51 per share and has a dividend yield of 15.6%. Designer Brands pays out -29.4% of its earnings in the form of a dividend. Cato pays out -37.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cato is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the MarketBeat Community prefer DBI or CATO?

Designer Brands received 493 more outperform votes than Cato when rated by MarketBeat users. However, 59.32% of users gave Cato an outperform vote while only 58.49% of users gave Designer Brands an outperform vote.

Company	Underperform	Outperform
Designer Brands	Outperform Votes 668 58.49%	Underperform Votes 474 41.51%
Cato	Outperform Votes 175 59.32%	Underperform Votes 120 40.68%

Which has more risk and volatility, DBI or CATO?

Designer Brands has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500. Comparatively, Cato has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Do analysts rate DBI or CATO?

Designer Brands presently has a consensus price target of $3.50, indicating a potential upside of 39.44%. Given Designer Brands' stronger consensus rating and higher probable upside, analysts clearly believe Designer Brands is more favorable than Cato.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Designer Brands	0 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00
Cato	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00

Which has higher valuation & earnings, DBI or CATO?

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
Designer Brands	$3.01B	0.04	$29.06M	-$0.68	-3.69
Cato	$642.95M	0.10	-$23.94M	-$1.35	-2.42

Does the media prefer DBI or CATO?

In the previous week, Designer Brands had 19 more articles in the media than Cato. MarketBeat recorded 23 mentions for Designer Brands and 4 mentions for Cato. Cato's average media sentiment score of -0.05 beat Designer Brands' score of -0.51 indicating that Cato is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Designer Brands	1 Very Positive mention(s)	0 Positive mention(s)	11 Neutral mention(s)	7 Negative mention(s)	3 Very Negative mention(s)	Negative
Cato	0 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Neutral

Do institutionals and insiders have more ownership in DBI or CATO?

88.8% of Designer Brands shares are owned by institutional investors. Comparatively, 61.1% of Cato shares are owned by institutional investors. 52.9% of Designer Brands shares are owned by company insiders. Comparatively, 18.1% of Cato shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Designer Brands beats Cato on 13 of the 19 factors compared between the two stocks.