H&R Block, Inc. (HRB): There Are Better Ways To Play Tax Preparation

Intuit Inc. (NASDAQ:INTU) is the only other publicly traded company that is a true direct competitor to H&R Block. They are best known for their TurboTax, QuickBooks, and Quicken software programs. Just like H&R Block, Inc. (NYSE:HRB), Intuit Inc. (NASDAQ:INTU) is also cash-positive and is projected to grow its earnings nicely over the next several years, at a consensus of 12% annually. Unlike H&R Block, Intuit has an excellent track record of growing its revenues, as it has greatly benefitted from the same online and do-it-yourself tax return trends that have hurt H&R Block.

Office Depot Inc (NYSE:ODP) is a play on the retail side of do-it-yourself finance, which is being made easier for the average consumer with more advanced and user-friendly software programs, such as TurboTax. In addition to the software itself, Office Depot sells virtually every other item a consumer would need to facilitate doing his/her own taxes and finances. If you think that the trend toward do-it-yourself and internet finance will continue, Office Depot Inc (NYSE:ODP) may be a good way to play it, especially if you’re not sure exactly which manufacturers will benefit the most.

What to Do With H&R Block?

If you already own shares of H&R Block, Inc. (NYSE:HRB), now may be a good time to sell at least some of your position to lock in your profits. If you are considering the company as a prospective investment, I would recommend either waiting for a significant pullback in the share price or I would suggest taking a good, long look at one of the alternatives that are a better value currently.

The article There Are Better Ways To Play Tax Preparation originally appeared on Fool.com and is written by Matthew Frankel.

Matthew Frankel has no position in any stocks mentioned. The Motley Fool recommends Intuit. The Motley Fool owns shares of Intuit. Matthew is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.