ASO vs CATO

For growth investors, Academy Sports and Outdoors, Inc.

(ASO) is the stronger pick with 2. 0% revenue growth year-over-year, versus -8. 2% for The Cato Corporation (CATO). Academy Sports and Outdoors, Inc. (ASO) offers the better valuation at 9. 7x trailing P/E (9. 1x forward), making it the more compelling value choice. Analysts rate Academy Sports and Outdoors, Inc. (ASO) a "Buy" — based on 22 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, Academy Sports and Outdoors, Inc.

(ASO) delivered a total return of +63. 6%, compared to -60. 4% for The Cato Corporation (CATO). Over 10 years, the gap is even starker: ASO returned +325. 9% versus CATO's -72. 3%. 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 Academy Sports and Outdoors, Inc. 's 1. 72β — meaning ASO is approximately 94% more volatile than CATO relative to the S&P 500. On balance sheet safety, Academy Sports and Outdoors, Inc. (ASO) carries a lower debt/equity ratio of 65% versus 90% for The Cato Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Academy Sports and Outdoors, Inc.

(ASO) is pulling ahead at 2. 0% 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 -3. 3% for Academy Sports and Outdoors, Inc.. Over a 3-year CAGR, ASO leads at -1. 8% 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.

Academy Sports and Outdoors, Inc.

(ASO) is the more profitable company, earning 6. 2% net margin versus -2. 9% for The Cato Corporation — meaning it keeps 6. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ASO leads at 8. 5% versus -4. 2% for CATO. At the gross margin level — before operating expenses — ASO leads at 34. 8%, 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 18. 7%, versus 1. 0% for Academy Sports and Outdoors, Inc. (ASO).

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), 18. 7% yield). Academy Sports and Outdoors, Inc. (ASO) carries a higher beta of 1. 72 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (CATO: -72. 3%, ASO: +325. 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: ASO 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.