Head-To-Head Survey: H&R Block (NYSE:HRB) versus Grand Canyon Education (NASDAQ:LOPE)

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

Institutional & Insider Ownership

94.2% of Grand Canyon Education shares are held by institutional investors. Comparatively, 90.1% of H&R Block shares are held by institutional investors. 2.1% of Grand Canyon Education shares are held by insiders. Comparatively, 0.7% of H&R Block shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Grand Canyon Education 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
Grand Canyon Education	$1.11 billion	3.77	$216.17 million	$8.27	19.32
H&R Block	$3.95 billion	1.48	$733.60 million	$5.72	8.36

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

Volatility & Risk

Grand Canyon Education has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, H&R Block has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Grand Canyon Education and H&R Block, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grand Canyon Education	0	1	3	0	2.75
H&R Block	1	2	1	1	2.40

Grand Canyon Education currently has a consensus target price of $160.67, indicating a potential upside of 0.57%. H&R Block has a consensus target price of $46.67, indicating a potential downside of 2.42%. Given Grand Canyon Education’s stronger consensus rating and higher probable upside, analysts plainly believe Grand Canyon Education is more favorable than H&R Block.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grand Canyon Education	19.63%	36.62%	26.87%
H&R Block	18.59%	-214.84%	22.56%

Summary

Grand Canyon Education beats H&R Block on 12 of the 15 factors compared between the two stocks.

About Grand Canyon Education

Grand Canyon Education, Inc. provides education services to colleges and universities in the United States. It offers technology services, including learning management system, internal administration, infrastructure, and support services; academic services, such as program and curriculum, faculty and related training and development, class scheduling, and skills and simulation lab sites; and counseling services and support services comprising admission, financial aid, and field experience and other counseling services. The company also offers marketing and communication services that include lead acquisition, digital communications strategy, brand identity, media planning and strategy, video, business intelligence and data science, and market research services; and back-office services consisting of finance and accounting, human resources, audit, and procurement services. In addition, it provides education services to 25 university partners. Grand Canyon Education, Inc. was founded in 1949 and is headquartered in Phoenix, Arizona.

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.