Weight Watchers International (NYSE: WTW) and H & R Block (NYSE:HRB) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Valuation and Earnings
This table compares Weight Watchers International and H & R Block’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Weight Watchers International||$1.31 billion||2.99||$163.51 million||$1.65||36.58|
|H & R Block||$3.04 billion||1.76||$408.94 million||$1.96||13.02|
This is a summary of recent ratings and price targets for Weight Watchers International and H & R Block, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Weight Watchers International||1||0||3||0||2.50|
|H & R Block||1||5||2||0||2.13|
Weight Watchers International presently has a consensus price target of $72.00, suggesting a potential upside of 19.28%. H & R Block has a consensus price target of $27.81, suggesting a potential upside of 9.03%. Given Weight Watchers International’s stronger consensus rating and higher probable upside, research analysts plainly believe Weight Watchers International is more favorable than H & R Block.
H & R Block pays an annual dividend of $0.96 per share and has a dividend yield of 3.8%. Weight Watchers International does not pay a dividend. H & R Block pays out 49.0% of its earnings in the form of a dividend. H & R Block has raised its dividend for 2 consecutive years.
This table compares Weight Watchers International and H & R Block’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Weight Watchers International||12.52%||-10.38%||9.01%|
|H & R Block||8.19%||-77.32%||11.77%|
Volatility & Risk
Weight Watchers International has a beta of 3.23, suggesting that its stock price is 223% more volatile than the S&P 500. Comparatively, H & R Block has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.
Insider & Institutional Ownership
92.1% of Weight Watchers International shares are owned by institutional investors. Comparatively, 95.3% of H & R Block shares are owned by institutional investors. 15.8% of Weight Watchers International shares are owned by company insiders. Comparatively, 0.6% of H & R Block shares are owned 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.
Weight Watchers International beats H & R Block on 10 of the 17 factors compared between the two stocks.
Weight Watchers International Company Profile
Weight Watchers International, Inc. is a provider of weight management services. The Company operates globally through a network of Company-owned and franchise operations. The Company’s branded products and services include meetings conducted by its franchisees, digital weight management products provided through its Websites, mobile sites and applications, products sold at meetings, licensed products sold in retail channels and magazine subscriptions and other publications. It operates through four segments: North America, United Kingdom, Continental Europe (CE) and Other. It sells a range of products, including bars, snacks, cookbooks, food and restaurant guides with SmartPoints values, Weight Watchers magazines, SmartPoints calculators and fitness kits, and certain third-party products, such as activity-tracking monitors. It sells its products through its meetings business, online and to its franchisees. It includes a range of nutritional, activity, behavioral and lifestyle tools.
H & R Block Company Profile
H&R Block, Inc. (H&R Block), through its subsidiaries, provides tax preparation and other services. The Company provides assisted income tax return preparation, digital do-it-yourself (DIY) tax solutions and other services and products related to income tax return preparation to the general public primarily in the United States, Canada, Australia and their respective territories. Assisted income tax return preparation and related services are provided by tax professionals through a system of retail offices operated directly by the Company or its franchisees. It offers tax support, planning, and business accounting and advisory services to its clients. The Company offers a range of online tax services, including preparation of federal and state income tax returns, review of tax returns by a tax professional, access to tax tips, advice and tax-related news, use of calculators for tax planning, error checking and electronic filing.
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