WallStSmart

Burlington Stores Inc (BURL)vsCato Corporation (CATO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Burlington Stores Inc generates 1676% more annual revenue ($11.56B vs $650.83M). BURL leads profitability with a 5.3% profit margin vs -2.9%. CATO appears more attractively valued with a PEG of 1.17. BURL earns a higher WallStSmart Score of 63/100 (C+).

BURL

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 6.7Quality: 5.8
Piotroski: 4/9Altman Z: 2.04

CATO

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 2.5Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BURLUndervalued (+18.0%)

Margin of Safety

+18.0%

Fair Value

$372.81

Current Price

$329.27

$43.54 discount

UndervaluedFair: $372.81Overvalued

Intrinsic value data unavailable for CATO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BURL2 strengths · Avg: 9.0/10
Return on EquityProfitability
38.4%10/10

Every $100 of equity generates 38 in profit

EPS GrowthGrowth
20.2%8/10

Earnings expanding 20.2% YoY

CATO2 strengths · Avg: 10.0/10
Price/BookValuation
0.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
63.3%10/10

Earnings expanding 63.3% YoY

Areas to Watch

BURL4 concerns · Avg: 3.3/10
P/E RatioValuation
34.1x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.3x4/10

Trading at 11.3x book value

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

PEG RatioValuation
2.992/10

Expensive relative to growth rate

CATO4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

Market CapQuality
$69.04M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
2.9%3/10

Operating margin of 2.9%

Return on EquityProfitability
-10.3%2/10

ROE of -10.3% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : BURL

The strongest argument for BURL centers on Return on Equity, EPS Growth. Revenue growth of 11.3% 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, Profit Margin.

Bear Case : CATO

The primary concerns for CATO are Revenue Growth, Market Cap, Operating Margin.

Key Dynamics to Monitor

BURL profiles as a value stock while CATO is a turnaround play — different risk/reward profiles.

BURL carries more volatility with a beta of 1.70 — expect wider price swings.

BURL is growing revenue faster at 11.3% — sustainability is the question.

CATO generates stronger free cash flow (-13M), providing more financial flexibility.

Bottom Line

BURL scores higher overall (63/100 vs 53/100) and 11.3% revenue growth. 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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