Critical Comparison: Skillful Craftsman Education Technology (NASDAQ:EDTK) versus H&R Block (NYSE:HRB)

Skillful Craftsman Education Technology (NASDAQ:EDTK) and H&R Block (NYSE:HRB) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Skillful Craftsman Education Technology and H&R Block, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skillful Craftsman Education Technology	1	0	0	0	1.00
H&R Block	1	3	1	0	2.00

H&R Block has a consensus target price of $43.00, suggesting a potential downside of 6.12%. Given H&R Block’s stronger consensus rating and higher probable upside, analysts clearly believe H&R Block is more favorable than Skillful Craftsman Education Technology.

Insider and Institutional Ownership

2.5% of Skillful Craftsman Education Technology shares are owned by institutional investors. Comparatively, 90.1% of H&R Block shares are owned by institutional investors. 32.0% of Skillful Craftsman Education Technology shares are owned by insiders. Comparatively, 1.4% of H&R Block shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Skillful Craftsman Education Technology and H&R Block”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skillful Craftsman Education Technology	$893,690.00	16.93	-$7.58 million	N/A	N/A
H&R Block	$3.76 billion	1.54	$605.77 million	$5.62	8.15

H&R Block has higher revenue and earnings than Skillful Craftsman Education Technology.

Volatility & Risk

Skillful Craftsman Education Technology has a beta of -0.44, meaning that its share price is 144% less volatile than the S&P 500. Comparatively, H&R Block has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Profitability

This table compares Skillful Craftsman Education Technology and H&R Block’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skillful Craftsman Education Technology	N/A	N/A	N/A
H&R Block	18.90%	-211.62%	22.70%

Summary

H&R Block beats Skillful Craftsman Education Technology on 9 of the 12 factors compared between the two stocks.

About Skillful Craftsman Education Technology

Skillful Craftsman Education Technology Limited provides vocational online education and technology services to college students and graduates in the People's Republic of China. The company's education services cover a range of subjects, including vocational, continuing, basic, and higher education. It operates three education platforms, including the Lifelong Education Public Service Platform that offers approximately 200 courses; Vocational Training platform, which provides 642 courses covering mechanics, electronics, auto repair, and construction subjects; and Virtual Simulation Experimental Training platform that offers 12 experimental programs. The company also offers technology services, including software development and maintenance, hardware installation, and testing and related consulting and training services; and cloud services for private companies, academic institutions, and government agencies. In addition, it provides financial education services through financial investment educational platform, which offers global securities market, basic securities knowledge, fundamental analysis, and technical analysis courses; and flexible employment service by providing recruitment outsourcing services for employer's permanent staff hires. Skillful Craftsman Education Technology Limited was founded in 2013 and is headquartered in Wuxi, the People's Republic of China.

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.