Citi Trends (NASDAQ:CTRN) versus Cato (NYSE:CATO) Head to Head Contrast

Citi Trends (NASDAQ:CTRN – Get Free Report) and Cato (NYSE:CATO – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Valuation and Earnings

This table compares Citi Trends and Cato”s gross revenue, earnings per share (EPS) and valuation.

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

Risk and Volatility

Citi Trends has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500. Comparatively, Cato has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Institutional and Insider Ownership

61.1% of Cato shares are owned by institutional investors. 3.8% of Citi Trends shares are owned by insiders. Comparatively, 16.6% of Cato shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Citi Trends and Cato, as provided by MarketBeat.com.

Citi Trends currently has a consensus target price of $39.50, indicating a potential downside of 13.92%. Given Citi Trends’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Citi Trends is more favorable than Cato.

Profitability

This table compares Citi Trends and Cato’s net margins, return on equity and return on assets.

Summary

Cato beats Citi Trends on 8 of the 14 factors compared between the two stocks.

About Citi Trends

(Get Free Report)

Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. The company offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories. It also provides accessories and beauty products that include handbags, luggage, hats, belts, sunglasses, jewelry, and watches, as well as offers outerwear for men and women. In addition, the company offers home and lifestyle products comprising home products for the bedroom, bathroom, kitchen, and decorative accessories; and food, tech, team sports, health and products, as well as seasonal items, books, and toys. Citi Trends, Inc. provides its products primarily to African American and multicultural families in the United States. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia.

About Cato

(Get Free Report)

The Cato Corporation, together with its subsidiaries, operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. It operates through two segments, Retail and Credit. The company's stores and e-commerce websites offer a range of apparel and accessories, including dressy, career, and casual sportswear; and dresses, coats, shoes, lingerie, costume jewelry, and handbags, as well as men's wear, and lines for kids and infants. It operates its stores and e-commerce websites under the Cato, Cato Fashions, Cato Plus, It's Fashion, It's Fashion Metro, and Versona names. It also provides credit card services to its customers, as well as layaway plans for customers. The Cato Corporation was incorporated in 1946 and is headquartered in Charlotte, North Carolina.