H&R Block, Inc. (HRB) vs Service Corporation International (SCI)

H&R Block, Inc. and Service Corporation International are both Personal Services companies. Service Corporation International is the larger, with a market value of $10.6B against $5.3B — 2.0× the size. H&R Block, Inc. trades at the lower P/E: 7.4× against 20.1×. H&R Block, Inc. grew revenue faster over the last twelve months: 4.90% against 2.89%. H&R Block, Inc. has the higher net margin (18.6% vs 12.3%) and the higher return on invested capital (89.9% vs 9.28%). Both pay a dividend; H&R Block, Inc. yields more (2.83% vs 1.68%). Across the 23 metrics below, H&R Block, Inc. leads on 20 and Service Corporation International on 3.

Valuation

Metric HRB SCI Personal Services median
P/E 7.38 20.11 15.23
P/S 1.37 2.45 1.12
P/B 45.84 6.96 3.60
Price to free cash flow 7.12 16.87 13.38
EV/EBITDA 6.07 11.83 9.17
EV/Sales 1.58 3.60 1.49
Earnings yield 13.56% 4.97% 4.97%
Free cash flow yield 14.04% 5.93% 4.32%

Profitability

Metric HRB SCI Personal Services median
Gross margin 44.33% 26.03% 30.06%
Operating margin 23.01% 22.37% 10.27%
Net margin 18.59% 12.30% 3.09%
Free cash flow margin 19.16% 14.53% 4.96%
Return on equity 710.90% 34.70% 0.00%
Return on assets 22.50% 2.89% 0.00%
Return on invested capital 89.89% 9.28% 5.36%

Growth

Metric HRB SCI Personal Services median
Revenue growth (TTM) 4.90% 2.89% 5.87%
EPS growth (last fiscal year) 28.93% 7.65% —
Revenue growth, 5-year CAGR 2.64% 4.18% 4.52%
Net income growth, 5-year CAGR 5.79% 1.01% 5.79%

Health

Metric HRB SCI Personal Services median
Debt to equity 12.69 3.45 1.93
Current ratio 1.13 0.53 0.90
Net debt to EBITDA 0.50 3.69 1.31

Dividend

Metric HRB SCI Personal Services median
Dividend yield 2.83% 1.68% 1.91%
Payout ratio 0.33 0.34 0.11

Size

Metric HRB SCI Personal Services median
Market cap 5.25b 10.60b 133.27m

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