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 ($5.3B and $5.0B). H&R Block, Inc. trades at the lower P/E: 7.4× against 19.2×. Frontdoor Inc. grew revenue faster over the last twelve months: 9.16% against 4.90%. H&R Block, Inc. has the higher net margin (18.6% vs 12.7%) and the higher return on invested capital (89.9% vs 27.6%). 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 19.22 7.38 15.23
P/S 2.41 1.37 1.12
P/B 18.21 45.84 3.60
Price to free cash flow 13.40 7.12 13.38
EV/EBITDA 10.45 6.07 9.17
EV/Sales 2.66 1.58 1.49
Earnings yield 5.20% 13.56% 4.97%
Free cash flow yield 7.46% 14.04% 4.32%

Profitability

Metric FTDR HRB Personal Services median
Gross margin 55.55% 44.33% 30.06%
Operating margin 21.48% 23.01% 10.27%
Net margin 12.72% 18.59% 3.09%
Free cash flow margin 17.99% 19.16% 4.96%
Return on equity 101.68% 710.90% 0.00%
Return on assets 12.53% 22.50% 0.00%
Return on invested capital 27.62% 89.89% 5.36%

Growth

Metric FTDR HRB Personal Services median
Revenue growth (TTM) 9.16% 4.90% 5.87%
EPS growth (last fiscal year) 13.62% 28.93% —
Revenue growth, 5-year CAGR 7.26% 2.64% 4.52%
Net income growth, 5-year CAGR 17.89% 5.79% 5.79%

Health

Metric FTDR HRB Personal Services median
Debt to equity 4.08 12.69 1.93
Current ratio 1.59 1.13 0.90
Net debt to EBITDA 1.15 0.50 1.31

Dividend

Metric FTDR HRB Personal Services median
Dividend yield — 2.83% 1.91%
Payout ratio 0.00 0.33 0.11

Size

Metric FTDR HRB Personal Services median
Market cap 4.95b 5.25b 133.27m

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