Analyzing Casio Computer Co.,Ltd. (OTCMKTS:CSIOF) & H&R Block (NYSE:HRB)

H&R Block (NYSE:HRB) and Casio Computer Co.,Ltd. (OTCMKTS:CSIOF) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

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

This is a summary of current recommendations and price targets for H&R Block and Casio Computer Co.,Ltd., as provided by MarketBeat.com.

	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 possible upside, research analysts plainly believe H&R Block is more favorable than Casio Computer Co.,Ltd..

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

Insider and Institutional 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 company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares H&R Block and Casio Computer Co.,Ltd.”s top-line 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	1.69	$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.

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.