WallStSmart

Burlington Stores Inc (BURL)vsCato Corporation (CATO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Burlington Stores Inc generates 1719% more annual revenue ($11.91B vs $654.67M). BURL leads profitability with a 5.2% profit margin vs 0.0%. CATO appears more attractively valued with a PEG of 1.17. BURL earns a higher WallStSmart Score of 59/100 (C).

BURL

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 6.5Value: 2.7Quality: 4.5
Piotroski: 5/9Altman Z: 1.95

CATO

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 3.5Value: 7.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.99
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BURLSignificantly Overvalued (-27.9%)

Margin of Safety

-27.9%

Fair Value

$239.08

Current Price

$317.05

$77.97 premium

UndervaluedFair: $239.08Overvalued
CATOUndervalued (+76.6%)

Margin of Safety

+76.6%

Fair Value

$12.93

Current Price

$3.18

$9.75 discount

UndervaluedFair: $12.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BURL1 strengths · Avg: 10.0/10
Return on EquityProfitability
34.0%10/10

Every $100 of equity generates 34 in profit

CATO2 strengths · Avg: 10.0/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
181.7%10/10

Earnings expanding 181.7% YoY

Areas to Watch

BURL4 concerns · Avg: 3.8/10
P/E RatioValuation
34.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
10.7x4/10

Trading at 10.7x book value

Altman Z-ScoreHealth
1.954/10

Grey zone — moderate risk

Profit MarginProfitability
5.2%3/10

5.2% margin — thin

CATO4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.5%4/10

0.5% revenue growth

Altman Z-ScoreHealth
1.994/10

Grey zone — moderate risk

Market CapQuality
$65.47M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : BURL

The strongest argument for BURL centers on Return on Equity. Revenue growth of 14.1% demonstrates continued momentum.

Bull Case : CATO

The strongest argument for CATO centers on Price/Book, EPS Growth. PEG of 1.17 suggests the stock is reasonably priced for its growth.

Bear Case : BURL

The primary concerns for BURL are P/E Ratio, Price/Book, Altman Z-Score. Debt-to-equity of 3.20 is elevated, increasing financial risk.

Bear Case : CATO

The primary concerns for CATO are Revenue Growth, Altman Z-Score, Market Cap. Thin 0.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

BURL carries more volatility with a beta of 1.46 — expect wider price swings.

BURL is growing revenue faster at 14.1% — sustainability is the question.

CATO generates stronger free cash flow (7M), providing more financial flexibility.

Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BURL scores higher overall (59/100 vs 57/100) and 14.1% revenue growth. CATO offers better value entry with a 76.6% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Burlington Stores Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Burlington Stores, Inc. is a branded apparel retailer in the United States. The company is headquartered in Burlington, New Jersey.

Cato Corporation

CONSUMER CYCLICAL · APPAREL RETAIL · USA

The Cato Corporation is a specialty clothing and fashion accessories retailer primarily in the southeastern United States. The company is headquartered in Charlotte, North Carolina.

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