Comparing H&R Block (NYSE:HRB) and Nerdy (NYSE:NRDY)

Nerdy (NYSE:NRDY) and H&R Block (NYSE:HRB) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Nerdy and H&R Block’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nerdy	-16.99%	-100.13%	-42.59%
H&R Block	18.59%	-214.84%	22.56%

Analyst Recommendations

This is a breakdown of current ratings for Nerdy and H&R Block, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nerdy	1	1	0	0	1.50
H&R Block	1	3	1	0	2.00

Nerdy currently has a consensus target price of $15.00, indicating a potential upside of 58.56%. H&R Block has a consensus target price of $46.67, indicating a potential upside of 3.48%. Given Nerdy’s higher possible upside, equities analysts clearly believe Nerdy is more favorable than H&R Block.

Institutional & Insider Ownership

39.1% of Nerdy shares are held by institutional investors. Comparatively, 90.1% of H&R Block shares are held by institutional investors. 51.0% of Nerdy shares are held by company insiders. Comparatively, 1.4% of H&R Block shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Nerdy has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, H&R Block has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.

Earnings & Valuation

This table compares Nerdy and H&R Block”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nerdy	$178.99 million	0.68	-$39.92 million	($3.75)	-2.52
H&R Block	$3.95 billion	1.45	$733.60 million	$5.72	7.88

H&R Block has higher revenue and earnings than Nerdy. Nerdy is trading at a lower price-to-earnings ratio than H&R Block, indicating that it is currently the more affordable of the two stocks.

Summary

H&R Block beats Nerdy on 10 of the 14 factors compared between the two stocks.

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.

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.