H&R Block (HRB) versus The Competition Financial Contrast

H&R Block (NYSE:HRB) is one of 166 public companies in the “Diversified Consumer Services” industry, but how does it compare to its rivals? We will compare H&R Block to similar companies based on the strength of its dividends, analyst recommendations, risk, earnings, institutional ownership, valuation and profitability.

Valuation and Earnings

This table compares H&R Block and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
H&R Block	$3.95 billion	$733.60 million	8.67
H&R Block Competitors	$3.53 billion	$219.82 million	12.11

H&R Block has higher revenue and earnings than its rivals. H&R Block is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

H&R Block has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, H&R Block’s rivals have a beta of 0.58, meaning that their average share price is 42% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for H&R Block and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H&R Block	1	2	1	1	2.40
H&R Block Competitors	1427	3417	5265	193	2.41

H&R Block currently has a consensus price target of $46.67, suggesting a potential downside of 5.93%. As a group, “Diversified Consumer Services” companies have a potential upside of 63.45%. Given H&R Block’s rivals stronger consensus rating and higher probable upside, analysts plainly believe H&R Block has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

90.1% of H&R Block shares are owned by institutional investors. Comparatively, 48.4% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 0.7% of H&R Block shares are owned by company insiders. Comparatively, 20.2% of shares of all “Diversified Consumer Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares H&R Block and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H&R Block	18.59%	-214.84%	22.56%
H&R Block Competitors	-3.16%	-28.48%	2.42%

Dividends

H&R Block pays an annual dividend of $1.84 per share and has a dividend yield of 3.7%. H&R Block pays out 32.2% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 6.0% and pay out 36.1% of their earnings in the form of a dividend. H&R Block has raised its dividend for 9 consecutive years.

Summary

H&R Block rivals beat H&R Block on 8 of the 15 factors compared.

About H&R Block

H&R Block, Inc. engages in the provision of tax return preparation solutions, financial products and small business solutions. The company was founded by Henry W. Bloch and Richard A. Bloch on January 25, 1955, and is headquartered in Kansas City, MO.