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CATO vs TSLA

CATO
The Cato Corporation
BEARISH
Price
$2.89
Market Cap
$56.9M
Sector
Consumer Cyclical
AI Confidence
90%
TSLA
Tesla, Inc.
BEARISH
Price
$386.42
Market Cap
$1.45T
Sector
Consumer Cyclical
AI Confidence
90%

Valuation

P/E Ratio
CATO
--
TSLA
357.8
Forward P/E
CATO
2.22
TSLA
140.41
P/B Ratio
CATO
0.35
TSLA
17.65
P/S Ratio
CATO
0.09
TSLA
15.29
EV/EBITDA
CATO
-30.62
TSLA
135.32

Profitability

Gross Margin
CATO
33.75%
TSLA
18.03%
Operating Margin
CATO
-9.05%
TSLA
4.7%
Profit Margin
CATO
-0.9%
TSLA
4.0%
ROE
CATO
-3.7%
TSLA
4.92%
ROA
CATO
-2.01%
TSLA
2.1%

Growth

Revenue Growth
CATO
-4.0%
TSLA
-3.1%
Earnings Growth
CATO
--
TSLA
-60.6%

Financial Health

Debt/Equity
CATO
0.96
TSLA
0.18
Current Ratio
CATO
1.24
TSLA
2.16
Quick Ratio
CATO
0.64
TSLA
1.54

Dividends

Dividend Yield
CATO
--
TSLA
--
Payout Ratio
CATO
0.0%
TSLA
0.0%

AI Verdict

CATO BEARISH

CATO exhibits severe financial distress, highlighted by a critical Piotroski F-Score of 1/9, indicating a near-total failure of fundamental health metrics. While the stock appears superficially cheap with a Price/Book of 0.35 and Price/Sales of 0.09, these are classic 'value trap' indicators given the negative operating margins and declining revenue growth. The combination of a 0/100 technical trend and a -72.8% five-year price collapse suggests a company in structural decline. Without a significant operational turnaround, the current valuation does not provide a sufficient margin of safety.

Strengths
Extremely low Price-to-Sales ratio (0.09)
Trading significantly below book value (P/B 0.35)
Positive gross margin (33.75%)
Risks
Critical financial health (Piotroski F-Score 1/9)
Negative operating margins (-9.05%) and negative ROE
Consistent revenue decline (YoY -4.00%)
TSLA BEARISH

Tesla's deterministic health is marginally stable with a Piotroski F-Score of 4/9, but the valuation is fundamentally decoupled from financial performance. The stock trades at a massive premium to its Graham Number ($23.07) and Intrinsic Value ($7.56), while exhibiting negative revenue growth (-3.10%) and a severe collapse in earnings growth (-60.60%). With zero earnings beats in the last four quarters and bearish insider activity, the current price is supported by sentiment rather than data.

Strengths
Very low Debt/Equity ratio (0.18) indicating minimal leverage risk
Strong liquidity position with a Current Ratio of 2.16
Dominant market capitalization and sector leadership
Risks
Extreme valuation metrics (P/E of 357.80 and PEG of 5.75)
Negative YoY revenue growth (-3.10%) and earnings growth (-60.60%)
Consistent failure to meet earnings estimates (0/4 beats in last 4 quarters)

Compare Another Pair

CATO vs TSLA: Head-to-Head Comparison

This page compares The Cato Corporation (CATO) and Tesla, Inc. (TSLA) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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