WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

H&R Block Inc generates 1% more annual revenue ($3.79B vs $3.76B). HRB leads profitability with a 16.2% profit margin vs 14.0%. HRB appears more attractively valued with a PEG of 0.58. HRB earns a higher WallStSmart Score of 67/100 (B-).

HRB

Strong Buy

67

out of 100

Grade: B-

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

ROL

Buy

52

out of 100

Grade: C-

Growth: 6.7Profit: 8.5Value: 4.7Quality: 6.0
Piotroski: 3/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HRBUndervalued (+83.2%)

Margin of Safety

+83.2%

Fair Value

$177.02

Current Price

$30.78

$146.24 discount

UndervaluedFair: $177.02Overvalued
ROLSignificantly Overvalued (-165.8%)

Margin of Safety

-165.8%

Fair Value

$24.68

Current Price

$53.48

$28.80 premium

UndervaluedFair: $24.68Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

ROL1 strengths · Avg: 10.0/10
Return on EquityProfitability
38.9%10/10

Every $100 of equity generates 39 in profit

Areas to Watch

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%

ROL4 concerns · Avg: 2.8/10
Price/BookValuation
18.7x4/10

Trading at 18.7x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.842/10

Expensive relative to growth rate

P/E RatioValuation
49.1x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : ROL

The strongest argument for ROL centers on Return on Equity.

Bear Case : HRB

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

Bear Case : ROL

The primary concerns for ROL are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 49.1x 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 0.80 — expect wider price swings.

HRB is growing revenue faster at 11.1% — sustainability is the question.

ROL generates stronger free cash flow (159M), providing more financial flexibility.

Bottom Line

HRB scores higher overall (67/100 vs 52/100), backed by strong 16.2% margins and 11.1% revenue growth. 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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