Head to Head Survey: NaaS Technology (NASDAQ:NAAS) and Cato (NYSE:CATO)

NaaS Technology (NASDAQ:NAAS) and Cato (NYSE:CATO) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares NaaS Technology and Cato’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NaaS Technology	N/A	N/A	N/A
Cato	-0.87%	-3.39%	-1.29%

Analyst Ratings

This is a summary of current ratings and target prices for NaaS Technology and Cato, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NaaS Technology	1	0	0	0	1.00
Cato	1	0	0	0	1.00

Insider and Institutional Ownership

1.8% of NaaS Technology shares are held by institutional investors. Comparatively, 61.1% of Cato shares are held by institutional investors. 18.0% of NaaS Technology shares are held by insiders. Comparatively, 18.3% of Cato shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

NaaS Technology has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Cato has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Valuation and Earnings

This table compares NaaS Technology and Cato”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NaaS Technology	$17.89 million	4.24	-$62.77 million	($87.84)	-0.04
Cato	$653.81 million	0.07	-$5.91 million	($0.30)	-7.83

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

About NaaS Technology

NaaS Technology Inc. provides electric vehicle (EV) charging services in China. The company offers integrated online EV charging solutions to charging stations, including mobility connectivity services through Kuaidian; SaaS products, such as traffic support and management, marketing, payment, chargers’ management, order management, load management, and membership management. It also provides offline EV charging solutions comprising site selection, hardware procurement, engineering, procurement, and construction, station maintenance, energy storage, and customer support services. In addition, the company offers electricity procurement services to charging stations, as well as other amenities and ancillary services, such as vending machines, massage chairs, and car wash tunnels. It serves charger manufacturers, EV OEMS, and end-users. NaaS Technology Inc. is headquartered in Beijing, China.

About Cato

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.