WallStSmart

H&R Block Inc (HRB)vsRollins Inc (ROL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

H&R Block Inc generates 2% more annual revenue ($3.91B vs $3.84B). HRB leads profitability with a 18.9% profit margin vs 13.8%. HRB appears more attractively valued with a PEG of 0.51. 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

ROL

Buy

52

out of 100

Grade: C-

Growth: 6.0Profit: 8.5Value: 5.3Quality: 5.0
Piotroski: 3/9Altman Z: 2.64
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
ROLUndervalued (+30.2%)

Margin of Safety

+30.2%

Fair Value

$67.65

Current Price

$46.51

$21.14 discount

UndervaluedFair: $67.65Overvalued

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

ROL1 strengths · Avg: 10.0/10
Return on EquityProfitability
38.3%10/10

Every $100 of equity generates 38 in profit

Areas to Watch

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

Grey zone — moderate risk

ROL4 concerns · Avg: 3.3/10
Price/BookValuation
16.3x4/10

Trading at 16.3x book value

EPS GrowthGrowth
1.3%4/10

1.3% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.402/10

Expensive relative to growth rate

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 : ROL

The strongest argument for ROL centers on Return on Equity. Revenue growth of 10.2% demonstrates continued momentum.

Bear Case : HRB

The primary concerns for HRB are Altman Z-Score.

Bear Case : ROL

The primary concerns for ROL are Price/Book, EPS Growth, Piotroski F-Score. A P/E of 43.3x leaves little room for execution misses.

Key Dynamics to Monitor

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

ROL carries more volatility with a beta of 0.73 — expect wider price swings.

ROL is growing revenue faster at 10.2% — 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 52/100), backed by strong 18.9% margins. ROL offers better value entry with a 30.2% margin of safety. Both earn "Strong Buy" and "Buy" 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.

Rollins Inc

CONSUMER CYCLICAL · PERSONAL SERVICES · USA

Rollins, Inc. is a North American consumer and commercial services company.

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