WallStSmart

Frontdoor Inc (FTDR)vsH&R Block Inc (HRB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

H&R Block Inc generates 81% more annual revenue ($3.79B vs $2.09B). HRB leads profitability with a 16.2% profit margin vs 12.2%. HRB appears more attractively valued with a PEG of 0.58. HRB earns a higher WallStSmart Score of 67/100 (B-).

FTDR

Hold

50

out of 100

Grade: D+

Growth: 4.7Profit: 7.0Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.14

HRB

Strong Buy

67

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 10.0Quality: 5.3
Piotroski: 5/9Altman Z: 1.99
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTDRSignificantly Overvalued (-139.9%)

Margin of Safety

-139.9%

Fair Value

$23.46

Current Price

$57.74

$34.28 premium

UndervaluedFair: $23.46Overvalued
HRBUndervalued (+83.2%)

Margin of Safety

+83.2%

Fair Value

$177.02

Current Price

$30.78

$146.24 discount

UndervaluedFair: $177.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FTDR2 strengths · Avg: 9.0/10
Return on EquityProfitability
106.0%10/10

Every $100 of equity generates 106 in profit

P/E RatioValuation
17.2x8/10

Attractively priced relative to earnings

HRB4 strengths · Avg: 9.0/10
P/E RatioValuation
7.2x10/10

Attractively priced relative to earnings

Return on EquityProfitability
67.9%10/10

Every $100 of equity generates 68 in profit

PEG RatioValuation
0.588/10

Growing faster than its price suggests

EPS GrowthGrowth
21.6%8/10

Earnings expanding 21.6% YoY

Areas to Watch

FTDR4 concerns · Avg: 3.3/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

Price/BookValuation
16.9x4/10

Trading at 16.9x book value

Operating MarginProfitability
3.0%3/10

Operating margin of 3.0%

EPS GrowthGrowth
-84.0%2/10

Earnings declined 84.0%

HRB3 concerns · Avg: 2.3/10
Altman Z-ScoreHealth
1.994/10

Grey zone — moderate risk

Free Cash FlowQuality
$-649.50M2/10

Negative free cash flow — burning cash

Operating MarginProfitability
-1.5%1/10

Operating margin of -1.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : FTDR

The strongest argument for FTDR centers on Return on Equity, P/E Ratio. Revenue growth of 13.4% demonstrates continued momentum.

Bull Case : HRB

The strongest argument for HRB centers on P/E Ratio, Return on Equity, PEG Ratio. Profitability is solid with margins at 16.2% and operating margin at -1.5%. Revenue growth of 11.1% demonstrates continued momentum.

Bear Case : FTDR

The primary concerns for FTDR are PEG Ratio, Price/Book, Operating Margin. Debt-to-equity of 3.80 is elevated, increasing financial risk.

Bear Case : HRB

The primary concerns for HRB are Altman Z-Score, Free Cash Flow, Operating Margin.

Key Dynamics to Monitor

FTDR profiles as a value stock while HRB is a mature play — different risk/reward profiles.

FTDR carries more volatility with a beta of 1.32 — expect wider price swings.

FTDR is growing revenue faster at 13.4% — sustainability is the question.

FTDR generates stronger free cash flow (95M), providing more financial flexibility.

Bottom Line

HRB scores higher overall (67/100 vs 50/100), backed by strong 16.2% margins and 11.1% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Frontdoor Inc

CONSUMER CYCLICAL · PERSONAL SERVICES · USA

front door, inc. The company is headquartered in Memphis, Tennessee.

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H&R Block Inc

CONSUMER CYCLICAL · PERSONAL SERVICES · USA

H&R Block, Inc., provides services and products for assisted preparation of income tax returns and self-preparation of income tax returns (DIY) to the general public, primarily in the United States, Canada and Australia. The company is headquartered in Kansas City, Missouri.

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