WallStSmart

H&R Block Inc (HRB)vsMedirom Healthcare Technologies Inc (MRM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Medirom Healthcare Technologies Inc generates 106% more annual revenue ($8.07B vs $3.91B). HRB leads profitability with a 18.9% profit margin vs 0.5%. MRM trades at a lower P/E of 3.0x. HRB earns a higher WallStSmart Score of 75/100 (B+).

HRB

Strong Buy

75

out of 100

Grade: B+

Growth: 6.0Profit: 9.5Value: 6.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.99

MRM

Hold

39

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 8.3Quality: 4.0
Piotroski: 3/9Altman Z: 0.93
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HRBSignificantly Overvalued (-38.6%)

Margin of Safety

-38.6%

Fair Value

$26.35

Current Price

$37.46

$11.11 premium

UndervaluedFair: $26.35Overvalued
MRMUndervalued (+62.4%)

Margin of Safety

+62.4%

Fair Value

$3.46

Current Price

$1.13

$2.33 discount

UndervaluedFair: $3.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HRB6 strengths · Avg: 9.3/10
P/E RatioValuation
6.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
67.9%10/10

Every $100 of equity generates 68 in profit

Operating MarginProfitability
43.2%10/10

Strong operational efficiency at 43.2%

Debt/EquityHealth
-83.1210/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.518/10

Growing faster than its price suggests

EPS GrowthGrowth
24.2%8/10

Earnings expanding 24.2% YoY

MRM3 strengths · Avg: 9.3/10
P/E RatioValuation
3.0x10/10

Attractively priced relative to earnings

Return on EquityProfitability
63.9%10/10

Every $100 of equity generates 64 in profit

EPS GrowthGrowth
27.8%8/10

Earnings expanding 27.8% YoY

Areas to Watch

HRB1 concerns · Avg: 4.0/10
Altman Z-ScoreHealth
1.994/10

Grey zone — moderate risk

MRM4 concerns · Avg: 3.0/10
Market CapQuality
$8.93M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

Debt/EquityHealth
1.753/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : HRB

The strongest argument for HRB centers on P/E Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 18.9% and operating margin at 43.2%. PEG of 0.51 suggests the stock is reasonably priced for its growth.

Bull Case : MRM

The strongest argument for MRM centers on P/E Ratio, Return on Equity, EPS Growth.

Bear Case : HRB

The primary concerns for HRB are Altman Z-Score.

Bear Case : MRM

The primary concerns for MRM are Market Cap, Profit Margin, Debt/Equity. Debt-to-equity of 1.75 is elevated, increasing financial risk. Thin 0.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

MRM carries more volatility with a beta of 1.00 — expect wider price swings.

HRB is growing revenue faster at 5.3% — sustainability is the question.

HRB generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

HRB scores higher overall (75/100 vs 39/100), backed by strong 18.9% margins. MRM offers better value entry with a 62.4% margin of safety. 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.

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.

Medirom Healthcare Technologies Inc

CONSUMER CYCLICAL · PERSONAL SERVICES · USA

MEDIROM Healthcare Technologies Inc. provides comprehensive healthcare services in Japan. The company is headquartered in Tokyo, Japan.

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