Head-To-Head Review: Nerdy (NYSE:NRDY) vs. H&R Block (NYSE:HRB)

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

Earnings and Valuation

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

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

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.

Volatility & Risk

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

Analyst Ratings

This is a breakdown of recent recommendations 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, suggesting a potential upside of 3.48%. Nerdy has a consensus price target of $15.00, suggesting a potential upside of 58.56%. Given Nerdy’s higher probable upside, analysts plainly believe Nerdy is more favorable than H&R Block.

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%

Institutional & Insider Ownership

90.1% of H&R Block shares are owned by institutional investors. Comparatively, 39.1% of Nerdy shares are owned by institutional investors. 1.4% of H&R Block shares are owned by insiders. Comparatively, 51.0% of Nerdy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

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.