Cato Corporation (The) (NYSE: CATO) and Christopher & Banks Corporation (NYSE:CBK) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Valuation & Earnings

This table compares Cato Corporation (The) and Christopher & Banks Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cato Corporation (The) $876.41 million 0.37 $34.92 million $0.64 20.67
Christopher & Banks Corporation $366.82 million 0.14 -$10.09 million ($0.68) -2.00

Cato Corporation (The) has higher revenue and earnings than Christopher & Banks Corporation. Christopher & Banks Corporation 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.

Institutional and Insider Ownership

88.4% of Cato Corporation (The) shares are held by institutional investors. Comparatively, 41.9% of Christopher & Banks Corporation shares are held by institutional investors. 9.0% of Cato Corporation (The) shares are held by insiders. Comparatively, 18.6% of Christopher & Banks Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Cato Corporation (The) and Christopher & Banks Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cato Corporation (The) 0 1 0 0 2.00
Christopher & Banks Corporation 0 0 0 0 N/A

Cato Corporation (The) currently has a consensus target price of $20.00, suggesting a potential upside of 51.17%. Given Cato Corporation (The)’s higher probable upside, research analysts clearly believe Cato Corporation (The) is more favorable than Christopher & Banks Corporation.

Risk & Volatility

Cato Corporation (The) has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Christopher & Banks Corporation has a beta of 3.59, suggesting that its share price is 259% more volatile than the S&P 500.

Profitability

This table compares Cato Corporation (The) and Christopher & Banks Corporation’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%
Christopher & Banks Corporation -6.90% -34.64% -18.21%

Dividends

Cato Corporation (The) pays an annual dividend of $1.32 per share and has a dividend yield of 10.0%. Christopher & Banks Corporation 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. Cato Corporation (The) has raised its dividend for 7 consecutive years.

Summary

Cato Corporation (The) beats Christopher & Banks Corporation on 11 of the 14 factors compared between the two stocks.

Cato Corporation (The) Company Profile

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.

Christopher & Banks Corporation Company Profile

Christopher & Banks Corporation is a national specialty retailer featuring private-brand women’s apparel and accessories. The Company offers its customers an assortment of clothing for everyday needs. Its merchandise assortments include designs of women’s apparel, generally consisting of casual clothing, everyday basics, wear-to-work, leisure/active wear, and sleepwear in missy, petite and women sizes. The Company also offers a selection of jewelry and accessories, including footwear. The Company operates in the Retail Operations segment, which includes the operation of its retail stores, outlet stores, online and mobile. The Retail Operations segment includes activities generated by the Company’s retail store locations (Missy Petite Women (MPW), Outlet stores, Christopher & Banks (CB), and C.J. Banks (CJ)), as well as the e-commerce business. Its merchandise is developed for women of all sizes, age 40 and older.

Receive News & Ratings for Cato Corporation (The) Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cato Corporation (The) and related companies with Analyst Ratings Network's FREE daily email newsletter.