H&R Block (NYSE:HRB) & OneSpaWorld (NASDAQ:OSW) Head-To-Head Comparison

OneSpaWorld (NASDAQ:OSW) and H&R Block (NYSE:HRB) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Earnings and Valuation

This table compares OneSpaWorld 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
OneSpaWorld	$1.03 billion	2.97	$71.62 million	$0.84	35.74
H&R Block	$3.95 billion	1.62	$733.60 million	$5.72	9.12

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OneSpaWorld	8.26%	19.00%	14.93%
H&R Block	18.59%	-214.84%	22.56%

Institutional & Insider Ownership

96.0% of OneSpaWorld shares are owned by institutional investors. Comparatively, 90.1% of H&R Block shares are owned by institutional investors. 3.6% of OneSpaWorld shares are owned by company insiders. Comparatively, 0.7% of H&R Block shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

OneSpaWorld pays an annual dividend of $0.25 per share and has a dividend yield of 0.8%. H&R Block pays an annual dividend of $1.84 per share and has a dividend yield of 3.5%. OneSpaWorld pays out 29.8% of its earnings in the form of a dividend. H&R Block pays out 32.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. H&R Block has raised its dividend for 9 consecutive years. H&R Block is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

OneSpaWorld has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, H&R Block has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for OneSpaWorld and H&R Block, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneSpaWorld	0	1	5	0	2.83
H&R Block	1	2	1	1	2.40

OneSpaWorld currently has a consensus target price of $34.00, suggesting a potential upside of 13.26%. H&R Block has a consensus target price of $46.67, suggesting a potential downside of 10.57%. Given OneSpaWorld’s stronger consensus rating and higher probable upside, analysts plainly believe OneSpaWorld is more favorable than H&R Block.

Summary

OneSpaWorld beats H&R Block on 10 of the 18 factors compared between the two stocks.

About OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.

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.