Cato Corporation (The) (CATO) & New York & (NWY) Head-To-Head Comparison
Cato Corporation (The) (NYSE: CATO) and New York & (NYSE:NWY) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.
Insider & Institutional Ownership
87.2% of Cato Corporation (The) shares are held by institutional investors. Comparatively, 81.5% of New York & shares are held by institutional investors. 9.0% of Cato Corporation (The) shares are held by company insiders. Comparatively, 54.3% of New York & shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Cato Corporation (The) and New York &’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cato Corporation (The)||1.92%||4.37%||2.86%|
|New York &||-1.31%||-7.84%||-2.00%|
Volatility and Risk
Cato Corporation (The) has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, New York & has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.
Cato Corporation (The) pays an annual dividend of $1.32 per share and has a dividend yield of 9.6%. New York & does not pay a dividend. Cato Corporation (The) pays out 206.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New York & has raised its dividend for 7 consecutive years.
This is a breakdown of current ratings and price targets for Cato Corporation (The) and New York &, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cato Corporation (The)||0||1||0||0||2.00|
|New York &||0||0||0||0||N/A|
Cato Corporation (The) currently has a consensus price target of $20.00, suggesting a potential upside of 45.35%. Given Cato Corporation (The)’s higher possible upside, equities research analysts plainly believe Cato Corporation (The) is more favorable than New York &.
Earnings and Valuation
This table compares Cato Corporation (The) and New York &’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cato Corporation (The)||$876.41 million||0.39||$34.92 million||$0.64||21.50|
|New York &||$914.20 million||0.14||$24.02 million||($0.19)||-10.47|
Cato Corporation (The) has higher revenue, but lower earnings than New York &. New York & is trading at a lower price-to-earnings ratio than Cato Corporation (The), indicating that it is currently the more affordable of the two stocks.
Cato Corporation (The) beats New York & on 9 of the 14 factors compared between the two stocks.
About Cato Corporation (The)
The Cato Corporation is a fashion specialty retailer. The Company’s merchandise lines include dressy, career, and casual sportswear, dresses, coats, shoes, lingerie, costume jewelry, handbags, men’s wear and lines for kids and newborns. The Company has two segments: the operation of a fashion specialty stores segment (Retail Segment) and a credit card segment (Credit Segment). The Company operated its women’s fashion specialty retail stores in 33 states as of January 28, 2017, principally in the southeastern United States. The Company offers its own credit card to its customers and all credit authorizations, payment processing, and collection efforts are performed by a separate subsidiary of the Company. The Company’s stores offer an assortment of on-trend apparel and accessory items in primarily junior/missy, plus sizes, men’s and kids sizes with a focus on color, product coordination and selection.
About New York &
New York & Company, Inc. is a specialty retailer of women’s fashion apparel and accessories. The Company’s branded New York & Company merchandise is sold through its national network of retail stores and online at www.nyandcompany.com. It operates approximately 490 stores, including over 80 outlet stores in over 40 states. It offers brands, including NY&C, City Style, NY Style, Soho Jeans, Lerner and Lerner New York. It offers a merchandise assortment consisting of wear-to-work, casual apparel and accessories, including pants, dresses, jackets, knit tops, blouses, sweaters, denim, t-shirts, activewear, handbags, jewelry and shoes. Its stores are located in shopping malls, lifestyle centers, outlet centers, and off-mall locations, including urban street locations. The outlet stores offer a merchandise mix consisting of apparel and accessories.
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