Cato Corporation (The) (CATO) vs Rent the Runway, Inc. (RENT)

Cato Corporation (The) and Rent the Runway, Inc. are both Apparel Retail companies. Rent the Runway, Inc. is the larger, with a market value of $60.5M against $48.4M — 1.2× the size. Cato Corporation (The) has negative trailing earnings, so its P/E is not meaningful; Rent the Runway, Inc. trades at 0.1×. Rent the Runway, Inc. grew revenue faster over the last twelve months: 21.2% against −1.10%. Rent the Runway, Inc. has the higher net margin (11.8% vs −0.86%) and the lower return on invested capital (−47.9% vs −12.8%). Across the 17 metrics below, Cato Corporation (The) leads on 9 and Rent the Runway, Inc. on 8.

Valuation

Metric CATO RENT Apparel Retail median
P/E n/m 0.13 12.56
P/S 0.07 0.15 0.35
P/B 0.28 n/m 1.57
Price to free cash flow 28.65 n/m 11.15
EV/EBITDA 9.51 n/m 7.42
EV/Sales (0.08) 0.49 0.51
Earnings yield (12.24%) 760.48% 5.76%
Free cash flow yield 3.49% (8.56%) 4.34%

Profitability

Metric CATO RENT Apparel Retail median
Gross margin 33.62% 32.68% 41.90%
Operating margin (2.27%) (12.32%) 2.50%
Net margin (0.86%) 11.80% 3.41%
Free cash flow margin 0.25% (1.31%) 2.86%
Return on equity (3.27%) (29.10%) 7.71%
Return on assets (1.29%) 21.05% 2.85%
Return on invested capital (12.79%) (47.88%) 6.41%

Growth

Metric CATO RENT Apparel Retail median
Revenue growth (TTM) (1.10%) 21.17% 4.14%
EPS growth (last fiscal year) 68.04% 110.16% —
Revenue growth, 5-year CAGR 2.60% 15.93% 5.92%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CATO RENT Apparel Retail median
Debt to equity 0.00 (2.40) 0.01
Current ratio 1.36 0.67 1.54
Net debt to EBITDA 18.68 (13.56) (0.29)

Dividend

Metric CATO RENT Apparel Retail median
Dividend yield 9.93% — 2.94%
Payout ratio 1.48 0.00 0.00

Size

Metric CATO RENT Apparel Retail median
Market cap 48.39m 60.46m 358.41m

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