Frontdoor Inc. (FTDR) vs H&R Block, Inc. (HRB)

Frontdoor Inc. and H&R Block, Inc. are both Personal Services companies. Frontdoor Inc. and H&R Block, Inc. are of similar size ($6.7B and $6.6B). H&R Block, Inc. trades at the lower P/E: 9.6× against 23.1×. Frontdoor Inc. grew revenue faster over the last twelve months: 6.80% against 4.90%. H&R Block, Inc. has the higher net margin (18.6% vs 13.0%) and the higher return on invested capital (89.9% vs 0.00%). Across the 22 metrics below, H&R Block, Inc. leads on 15 and Frontdoor Inc. on 7.

Valuation

Metric FTDR HRB Personal Services median
P/E 23.08 9.59 14.33
P/S 2.97 1.78 1.07
P/B 22.83 59.61 4.19
Price to free cash flow 16.50 9.26 9.89
EV/EBITDA 12.93 7.64 9.86
EV/Sales 3.23 1.99 1.28
Earnings yield 4.33% 10.42% 3.58%
Free cash flow yield 6.06% 10.80% 6.06%

Profitability

Metric FTDR HRB Personal Services median
Gross margin 54.97% 44.33% 32.10%
Operating margin 0.00% 23.01% 5.04%
Net margin 12.96% 18.59% (2.19%)
Free cash flow margin 18.00% 19.16% 8.29%
Return on equity 0.00% 710.90% 0.00%
Return on assets 12.72% 22.50% 0.00%
Return on invested capital 0.00% 89.89% 0.10%

Growth

Metric FTDR HRB Personal Services median
Revenue growth (TTM) 6.80% 4.90% 4.90%
EPS growth (last fiscal year) 13.62% 28.93% 23.84%
Revenue growth, 5-year CAGR 7.26% 2.64% 4.52%
Net income growth, 5-year CAGR 17.89% 5.79% 10.19%

Health

Metric FTDR HRB Personal Services median
Debt to equity 3.66 12.69 2.13
Current ratio 1.75 1.13 1.13
Net debt to EBITDA 1.15 0.50 1.98

Dividend

Metric FTDR HRB Personal Services median
Dividend yield — 3.13% —
Payout ratio — 0.30 —

Size

Metric FTDR HRB Personal Services median
Market cap 6.61b 6.74b 571.45m

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