Service Co. International (NYSE:SCI) and H&R Block (NYSE:HRB) are both mid-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Valuation & Earnings
This table compares Service Co. International and H&R Block's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Service Co. International | $3.23 billion | 2.42 | $369.60 million | $1.90 | 24.31 |
| H&R Block | $2.64 billion | 1.36 | $-7,530,000.00 | $0.84 | 23.31 |
Service Co. International has higher revenue and earnings than H&R Block. H&R Block is trading at a lower price-to-earnings ratio than Service Co. International, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Service Co. International and H&R Block, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Service Co. International | 0 | 0 | 5 | 0 | 3.00 |
| H&R Block | 0 | 4 | 2 | 0 | 2.33 |
Service Co. International currently has a consensus target price of $48.80, suggesting a potential upside of 5.65%. H&R Block has a consensus target price of $18.80, suggesting a potential downside of 3.98%. Given Service Co. International's stronger consensus rating and higher probable upside, analysts plainly believe Service Co. International is more favorable than H&R Block.
Dividends
Service Co. International pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. H&R Block pays an annual dividend of $1.04 per share and has a dividend yield of 5.3%. Service Co. International pays out 44.2% of its earnings in the form of a dividend. H&R Block pays out 123.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Service Co. International has raised its dividend for 1 consecutive years and H&R Block has raised its dividend for 1 consecutive years.
Risk & Volatility
Service Co. International has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, H&R Block has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
Insider & Institutional Ownership
83.4% of Service Co. International shares are held by institutional investors. Comparatively, 89.3% of H&R Block shares are held by institutional investors. 4.7% of Service Co. International shares are held by company insiders. Comparatively, 0.7% of H&R Block shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Service Co. International and H&R Block's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Service Co. International | 13.62% | 24.63% | 3.24% |
| H&R Block | 6.38% | -379.12% | 9.22% |
Summary
Service Co. International beats H&R Block on 11 of the 16 factors compared between the two stocks.
