Reviewing H&R Block (NYSE:HRB) and Where Food Comes From (NASDAQ:WFCF)

Where Food Comes From (NASDAQ:WFCF) and H&R Block (NYSE:HRB) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Earnings & Valuation

This table compares Where Food Comes From and H&R Block”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Where Food Comes From	$25.75 million	2.29	$2.12 million	$0.39	29.28
H&R Block	$3.76 billion	1.79	$595.32 million	$4.47	11.22

H&R Block has higher revenue and earnings than Where Food Comes From. H&R Block is trading at a lower price-to-earnings ratio than Where Food Comes From, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

18.8% of Where Food Comes From shares are held by institutional investors. Comparatively, 90.1% of H&R Block shares are held by institutional investors. 50.3% of Where Food Comes From shares are held by company insiders. Comparatively, 1.3% of H&R Block shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Where Food Comes From and H&R Block’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Where Food Comes From	7.99%	18.22%	11.07%
H&R Block	16.11%	-191.38%	21.86%

Risk and Volatility

Where Food Comes From has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, H&R Block has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Where Food Comes From and H&R Block, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Where Food Comes From	0	0	0	0	0.00
H&R Block	1	1	1	0	2.00

H&R Block has a consensus target price of $55.00, indicating a potential upside of 9.67%. Given H&R Block’s stronger consensus rating and higher probable upside, analysts plainly believe H&R Block is more favorable than Where Food Comes From.

Summary

H&R Block beats Where Food Comes From on 9 of the 14 factors compared between the two stocks.

About Where Food Comes From

Where Food Comes From, Inc., together with its subsidiaries, operates as a third-party food verification company in North America. The company operates through Verification and Certification, and Professional Services segments. It conducts on-site and desk audits to verify that claims being made about livestock, food, other specialty crops, and agricultural and aquaculture products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education. It also offers professional services and technology solutions; verification solutions; and consulting services, as well as sells hardware. The company serves beef and pork packers, organic producers and processors, and specialty retail chains. The company was formerly known as Integrated Management Information, Inc. and changed its name to Where Food Comes From, Inc. in December 2012. Where Food Comes From, Inc. was founded in 1996 and is based in Castle Rock, Colorado.

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.