H&R Block (NYSE:HRB – Get Free Report) and Casio Computer Co.,Ltd. (OTCMKTS:CSIOF – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Institutional and Insider Ownership
90.1% of H&R Block shares are held by institutional investors. Comparatively, 17.1% of Casio Computer Co.,Ltd. shares are held by institutional investors. 1.4% of H&R Block shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Dividends
H&R Block pays an annual dividend of $1.68 per share and has a dividend yield of 3.2%. Casio Computer Co.,Ltd. pays an annual dividend of $21.90 per share and has a dividend yield of 186.5%. H&R Block pays out 29.4% of its earnings in the form of a dividend. Casio Computer Co.,Ltd. pays out 28.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. H&R Block has raised its dividend for 9 consecutive years. Casio Computer Co.,Ltd. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| H&R Block | 1 | 3 | 1 | 0 | 2.00 |
| Casio Computer Co.,Ltd. | 0 | 0 | 0 | 0 | 0.00 |
H&R Block currently has a consensus price target of $46.67, indicating a potential downside of 11.24%. Given H&R Block’s stronger consensus rating and higher probable upside, equities research analysts clearly believe H&R Block is more favorable than Casio Computer Co.,Ltd..
Earnings & Valuation
This table compares H&R Block and Casio Computer Co.,Ltd.”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| H&R Block | $3.95 billion | 1.69 | $733.60 million | $5.72 | 9.19 |
| Casio Computer Co.,Ltd. | N/A | N/A | N/A | $77.38 | 0.15 |
H&R Block has higher revenue and earnings than Casio Computer Co.,Ltd.. Casio Computer Co.,Ltd. is trading at a lower price-to-earnings ratio than H&R Block, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares H&R Block and Casio Computer Co.,Ltd.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| H&R Block | 18.59% | -214.84% | 22.56% |
| Casio Computer Co.,Ltd. | N/A | N/A | N/A |
Summary
H&R Block beats Casio Computer Co.,Ltd. on 10 of the 14 factors compared between the two stocks.
About H&R Block
H&R Block, Inc. engages in the provision of tax return preparation solutions, financial products and small business solutions. The company was founded by Henry W. Bloch and Richard A. Bloch on January 25, 1955, and is headquartered in Kansas City, MO.
About Casio Computer Co.,Ltd.
Casio Computer Co.,Ltd. develops, produces, and sells consumer, system equipment, and other products. The company operates in Timepieces, Consumer, System Equipment, and Other segments. It offers timepieces, electronic dictionaries, calculators, label printers, electronic musical instruments, handheld terminals, cash registers, management support systems, data projectors, formed parts, and molds products. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.
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