H&R Block (NYSE:HRB) versus Coursera (NYSE:COUR) Head to Head Review

H&R Block (NYSE:HRB) and Coursera (NYSE:COUR) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Insider & Institutional Ownership

90.1% of H&R Block shares are held by institutional investors. Comparatively, 89.5% of Coursera shares are held by institutional investors. 0.7% of H&R Block shares are held by company insiders. Comparatively, 16.3% of Coursera shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares H&R Block and Coursera’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%
Coursera	-15.39%	-1.72%	-1.07%

Valuation and Earnings

This table compares H&R Block and Coursera”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H&R Block	$3.95 billion	1.36	$733.60 million	$5.72	7.64
Coursera	$757.50 million	1.74	-$51.00 million	($0.67)	-7.43

H&R Block has higher revenue and earnings than Coursera. Coursera 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.

Volatility and Risk

H&R Block has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Coursera has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for H&R Block and Coursera, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H&R Block	1	2	1	1	2.40
Coursera	1	4	7	0	2.50

H&R Block presently has a consensus price target of $46.67, suggesting a potential upside of 6.82%. Coursera has a consensus price target of $8.36, suggesting a potential upside of 68.11%. Given Coursera’s stronger consensus rating and higher probable upside, analysts plainly believe Coursera is more favorable than H&R Block.

Summary

H&R Block beats Coursera on 8 of the 15 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 Coursera

Coursera, Inc. operates an online educational content platform in the United States, Europe, Africa, the Asia Pacific, the Middle East, and internationally. It operates in three segments: Consumer, Enterprise, and Degrees. The company offers guided projects, courses, and specializations, as well as online degrees; and certificates for entry-level professional, non-entry level professional, university, and MasterTrack. It offers its products to individuals, enterprise, business, campus, and government. The company was formerly known as Dkandu, Inc. and changed its name to Coursera, Inc. in April 2012. Coursera, Inc. was incorporated in 2011 and is headquartered in Mountain View, California.