Grand Canyon Education (NASDAQ:LOPE – Get Free Report) and H&R Block (NYSE:HRB – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
Insider & Institutional Ownership
94.2% of Grand Canyon Education shares are owned by institutional investors. Comparatively, 90.1% of H&R Block shares are owned by institutional investors. 2.1% of Grand Canyon Education shares are owned by insiders. Comparatively, 0.7% 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.
Valuation & Earnings
This table compares Grand Canyon Education and H&R Block”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grand Canyon Education | $1.11 billion | 3.81 | $216.17 million | $8.27 | 19.54 |
| H&R Block | $3.95 billion | 1.51 | $733.60 million | $5.72 | 8.50 |
H&R Block has higher revenue and earnings than Grand Canyon Education. H&R Block is trading at a lower price-to-earnings ratio than Grand Canyon Education, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations for Grand Canyon Education and H&R Block, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grand Canyon Education | 0 | 1 | 3 | 0 | 2.75 |
| H&R Block | 1 | 2 | 1 | 1 | 2.40 |
Grand Canyon Education presently has a consensus price target of $160.67, indicating a potential downside of 0.57%. H&R Block has a consensus price target of $46.67, indicating a potential downside of 4.06%. Given Grand Canyon Education’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Grand Canyon Education is more favorable than H&R Block.
Profitability
This table compares Grand Canyon Education and H&R Block’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grand Canyon Education | 19.63% | 36.62% | 26.87% |
| H&R Block | 18.59% | -214.84% | 22.56% |
Volatility & Risk
Grand Canyon Education has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, H&R Block has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.
Summary
Grand Canyon Education beats H&R Block on 12 of the 15 factors compared between the two stocks.
About Grand Canyon Education
Grand Canyon Education, Inc. provides education services to colleges and universities in the United States. It offers technology services, including learning management system, internal administration, infrastructure, and support services; academic services, such as program and curriculum, faculty and related training and development, class scheduling, and skills and simulation lab sites; and counseling services and support services comprising admission, financial aid, and field experience and other counseling services. The company also offers marketing and communication services that include lead acquisition, digital communications strategy, brand identity, media planning and strategy, video, business intelligence and data science, and market research services; and back-office services consisting of finance and accounting, human resources, audit, and procurement services. In addition, it provides education services to 25 university partners. Grand Canyon Education, Inc. was founded in 1949 and is headquartered in Phoenix, Arizona.
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.
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