H&R Block (NYSE:HRB – Get Free Report) and Nerdy (NYSE:NRDY – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Valuation & Earnings
This table compares H&R Block and Nerdy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| H&R Block | $3.95 billion | 1.47 | $733.60 million | $5.72 | 7.99 |
| Nerdy | $178.99 million | 0.63 | -$39.92 million | ($3.75) | -2.35 |
Risk & Volatility
H&R Block has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Nerdy has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.
Profitability
This table compares H&R Block and Nerdy’s 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% |
| Nerdy | -16.99% | -100.13% | -42.59% |
Insider and Institutional Ownership
90.1% of H&R Block shares are held by institutional investors. Comparatively, 39.1% of Nerdy shares are held by institutional investors. 1.4% of H&R Block shares are held by company insiders. Comparatively, 51.0% of Nerdy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and price targets for H&R Block and Nerdy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| H&R Block | 1 | 3 | 1 | 0 | 2.00 |
| Nerdy | 1 | 1 | 0 | 0 | 1.50 |
H&R Block currently has a consensus price target of $46.67, indicating a potential upside of 2.05%. Nerdy has a consensus price target of $15.00, indicating a potential upside of 69.95%. Given Nerdy’s higher possible upside, analysts clearly believe Nerdy is more favorable than H&R Block.
Summary
H&R Block beats Nerdy on 10 of the 14 factors compared between the two stocks.
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.
About Nerdy
Nerdy, Inc. operates platform for live online learning. The company's purpose-built proprietary platform leverages technology, including artificial intelligence to connect students, users, parents, guardians, and purchasers of various ages to tutors, instructors, subject matter experts, educators, and other professionals, delivering value on both sides of the network. Its learning destination provides learning experiences across various subjects and multiple formats, including one-on-one instruction, small group tutoring, large format classes, tutor chat, essay review, adaptive assessment, and self-study tools. The company's flagship business, Varsity Tutors, operates platforms for live online tutoring and classes. Its solutions are available directly to learners, as well as through education systems. The company was founded in 2007 and is headquartered in Saint Louis, Missouri.
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