SCVL vs CATO

For growth investors, Shoe Carnival, Inc.

(SCVL) is the stronger pick with 2. 3% revenue growth year-over-year, versus -8. 2% for The Cato Corporation (CATO). Shoe Carnival, Inc. (SCVL) offers the better valuation at 6. 8x trailing P/E (9. 5x forward), making it the more compelling value choice. Analysts rate Shoe Carnival, Inc. (SCVL) a "Hold" — based on 14 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Shoe Carnival, Inc.

(SCVL) delivered a total return of -34. 8%, compared to -60. 9% for The Cato Corporation (CATO). Over 10 years, the gap is even starker: SCVL returned +67. 9% versus CATO's -71. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Cato Corporation (CATO) is the lower-risk stock at 0.

88β versus Shoe Carnival, Inc. 's 1. 45β — meaning SCVL is approximately 64% more volatile than CATO relative to the S&P 500. On balance sheet safety, Shoe Carnival, Inc. (SCVL) carries a lower debt/equity ratio of 57% versus 90% for The Cato Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Shoe Carnival, Inc.

(SCVL) is pulling ahead at 2. 3% versus -8. 2% for The Cato Corporation (CATO). On earnings-per-share growth, the picture is similar: The Cato Corporation grew EPS 17. 1% year-over-year, compared to 0. 0% for Shoe Carnival, Inc.. Over a 3-year CAGR, SCVL leads at -3. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Shoe Carnival, Inc.

(SCVL) is the more profitable company, earning 6. 1% net margin versus -2. 9% for The Cato Corporation — meaning it keeps 6. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SCVL leads at 7. 6% versus -4. 2% for CATO. At the gross margin level — before operating expenses — SCVL leads at 35. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

All stocks in this comparison pay dividends.

The Cato Corporation (CATO) offers the highest yield at 19. 0%, versus 3. 0% for Shoe Carnival, Inc. (SCVL).

For long-horizon retirement investors, The Cato Corporation (CATO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

88), 19. 0% yield). Both have compounded well over 10 years (CATO: -71. 7%, SCVL: +67. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: SCVL is a small-cap deep-value stock; CATO is a small-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.