Cato Corporation (CATO)vsThe TJX Companies Inc (TJX)
CATO
Cato Corporation
$2.37
-1.66%
CONSUMER CYCLICAL · Cap: $47.99M
TJX
The TJX Companies Inc
$126.00
-0.02%
CONSUMER CYCLICAL · Cap: $138.62B
Smart Verdict
WallStSmart Research — data-driven comparison
The TJX Companies Inc generates 9589% more annual revenue ($62.36B vs $643.67M). TJX leads profitability with a 9.7% profit margin vs -0.9%. CATO appears more attractively valued with a PEG of 1.17. TJX earns a higher WallStSmart Score of 58/100 (C).
CATO
Hold40
out of 100
Grade: F
TJX
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+75.6%
Fair Value
$12.36
Current Price
$2.37
$9.99 discount
Margin of Safety
+10.6%
Fair Value
$140.96
Current Price
$126.00
$14.97 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 57 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 23.6% YoY
Generating 1.7B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
ROE of -3.7% — below average capital efficiency
Revenue declined 6.2%
Earnings declined 83.3%
Expensive relative to growth rate
Trading at 13.4x book value
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : CATO
The strongest argument for CATO centers on Price/Book. PEG of 1.17 suggests the stock is reasonably priced for its growth.
Bull Case : TJX
The strongest argument for TJX centers on Return on Equity, Altman Z-Score, Market Cap.
Bear Case : CATO
The primary concerns for CATO are Market Cap, Return on Equity, Revenue Growth.
Bear Case : TJX
The primary concerns for TJX are PEG Ratio, Price/Book, Debt/Equity.
Key Dynamics to Monitor
CATO profiles as a turnaround stock while TJX is a value play — different risk/reward profiles.
TJX carries more volatility with a beta of 0.59 — expect wider price swings.
TJX is growing revenue faster at 5.4% — sustainability is the question.
TJX generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
TJX scores higher overall (58/100 vs 40/100). CATO offers better value entry with a 75.6% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
The TJX Companies Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts.
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