WallStSmart

H&R Block Inc (HRB)vsService Corporation International (SCI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Service Corporation International generates 14% more annual revenue ($4.31B vs $3.79B). HRB leads profitability with a 16.2% profit margin vs 12.6%. 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

SCI

Buy

62

out of 100

Grade: C+

Growth: 4.7Profit: 8.0Value: 8.0Quality: 3.3
Piotroski: 3/9Altman Z: 0.52
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
SCIOvervalued (-5.6%)

Margin of Safety

-5.6%

Fair Value

$79.95

Current Price

$78.79

$1.16 premium

UndervaluedFair: $79.95Overvalued

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

SCI2 strengths · Avg: 9.0/10
Return on EquityProfitability
32.7%10/10

Every $100 of equity generates 33 in profit

Operating MarginProfitability
25.5%8/10

Strong operational efficiency at 25.5%

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%

SCI3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.522/10

Distress zone — elevated risk

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 : SCI

The strongest argument for SCI centers on Return on Equity, Operating Margin. PEG of 1.48 suggests the stock is reasonably priced for its growth.

Bear Case : HRB

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

Bear Case : SCI

The primary concerns for SCI are Revenue Growth, Piotroski F-Score, Altman Z-Score.

Key Dynamics to Monitor

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

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

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

SCI generates stronger free cash flow (132M), providing more financial flexibility.

Bottom Line

HRB scores higher overall (67/100 vs 62/100), 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.

Service Corporation International

CONSUMER CYCLICAL · PERSONAL SERVICES · USA

Service Corporation International offers death care products and services in the United States and Canada. The company is headquartered in Houston, Texas.

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