WallStSmart

Frontdoor Inc (FTDR)vsH&R Block Inc (HRB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

H&R Block Inc generates 84% more annual revenue ($3.95B vs $2.15B). HRB leads profitability with a 18.6% profit margin vs 12.8%. HRB appears more attractively valued with a PEG of 0.58. HRB earns a higher WallStSmart Score of 67/100 (B-).

FTDR

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 8.5Value: 4.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.33

HRB

Strong Buy

67

out of 100

Grade: B-

Growth: 4.0Profit: 9.5Value: 6.7Quality: 5.0
Piotroski: 5/9Altman Z: 2.00
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTDRSignificantly Overvalued (-32.5%)

Margin of Safety

-32.5%

Fair Value

$42.49

Current Price

$81.01

$38.52 premium

UndervaluedFair: $42.49Overvalued
HRBSignificantly Overvalued (-62.9%)

Margin of Safety

-62.9%

Fair Value

$27.71

Current Price

$45.12

$17.41 premium

UndervaluedFair: $27.71Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FTDR2 strengths · Avg: 9.0/10
Return on EquityProfitability
113.0%10/10

Every $100 of equity generates 113 in profit

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

HRB4 strengths · Avg: 9.5/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
67.9%10/10

Every $100 of equity generates 68 in profit

Operating MarginProfitability
32.9%10/10

Strong operational efficiency at 32.9%

PEG RatioValuation
0.588/10

Growing faster than its price suggests

Areas to Watch

FTDR4 concerns · Avg: 3.3/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

Price/BookValuation
19.8x4/10

Trading at 19.8x book value

Revenue GrowthGrowth
4.5%4/10

4.5% revenue growth

Debt/EquityHealth
4.141/10

Elevated debt levels

HRB4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
3.0%4/10

3.0% revenue growth

EPS GrowthGrowth
4.5%4/10

4.5% earnings growth

Price/BookValuation
47.5x2/10

Trading at 47.5x book value

Debt/EquityHealth
17.891/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : FTDR

The strongest argument for FTDR centers on Return on Equity, Operating Margin.

Bull Case : HRB

The strongest argument for HRB centers on P/E Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 18.6% and operating margin at 32.9%. PEG of 0.58 suggests the stock is reasonably priced for its growth.

Bear Case : FTDR

The primary concerns for FTDR are PEG Ratio, Price/Book, Revenue Growth. Debt-to-equity of 4.14 is elevated, increasing financial risk.

Bear Case : HRB

The primary concerns for HRB are Revenue Growth, EPS Growth, Price/Book. Debt-to-equity of 17.89 is elevated, increasing financial risk.

Key Dynamics to Monitor

FTDR carries more volatility with a beta of 1.51 — expect wider price swings.

FTDR is growing revenue faster at 4.5% — sustainability is the question.

HRB generates stronger free cash flow (237M), providing more financial flexibility.

Monitor PERSONAL SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HRB scores higher overall (67/100 vs 59/100), backed by strong 18.6% margins. 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.

Frontdoor Inc

CONSUMER CYCLICAL · PERSONAL SERVICES · USA

front door, inc. The company is headquartered in Memphis, Tennessee.

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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.

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