H&R Block vs Intuit Which Is More Profitable?

H&R Block and Intuit are both key players in the financial services industry, offering products and services in tax preparation and financial management. H&R Block is a well-established company known for its tax preparation services, while Intuit is the creator of popular software like TurboTax and QuickBooks. Both companies have seen growth in recent years, but their stocks have performed differently in the market. Investors may want to consider the strengths and weaknesses of each company before making investment decisions.

H&R Block or Intuit?

When comparing H&R Block and Intuit, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between H&R Block and Intuit.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. H&R Block has a dividend yield of 2.48%, while Intuit has a dividend yield of 0.56%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. H&R Block reports a 5-year dividend growth of 4.27% year and a payout ratio of 30.96%. On the other hand, Intuit reports a 5-year dividend growth of 14.59% year and a payout ratio of 36.66%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with H&R Block P/E ratio at 13.36 and Intuit's P/E ratio at 64.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. H&R Block P/B ratio is -21.29 while Intuit's P/B ratio is 10.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, H&R Block has seen a 5-year revenue growth of 0.50%, while Intuit's is 1.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with H&R Block's ROE at -198.73% and Intuit's ROE at 16.16%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $55.92 for H&R Block and $662.95 for Intuit. Over the past year, H&R Block's prices ranged from $42.28 to $68.45, with a yearly change of 61.90%. Intuit's prices fluctuated between $557.29 and $714.78, with a yearly change of 28.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.