Bright Horizons Family Solutions (BFAM) vs. Its Peers Head-To-Head Review

Bright Horizons Family Solutions (NYSE:BFAM) is one of 166 public companies in the “Diversified Consumer Services” industry, but how does it contrast to its competitors? We will compare Bright Horizons Family Solutions to similar companies based on the strength of its dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Profitability

This table compares Bright Horizons Family Solutions and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bright Horizons Family Solutions	-4.38%	23.72%	6.45%
Bright Horizons Family Solutions Competitors	-3.34%	-28.46%	2.40%

Risk and Volatility

Bright Horizons Family Solutions has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Bright Horizons Family Solutions’ competitors have a beta of 0.50, suggesting that their average share price is 50% less volatile than the S&P 500.

Institutional & Insider Ownership

49.0% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 1.4% of Bright Horizons Family Solutions shares are owned by insiders. Comparatively, 19.5% of shares of all “Diversified Consumer Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Bright Horizons Family Solutions and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bright Horizons Family Solutions	$3.07 billion	$193.12 million	-18.93
Bright Horizons Family Solutions Competitors	$3.24 billion	$219.82 million	11.70

Bright Horizons Family Solutions’ competitors have higher revenue and earnings than Bright Horizons Family Solutions. Bright Horizons Family Solutions is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and target prices for Bright Horizons Family Solutions and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bright Horizons Family Solutions	2	4	4	0	2.20
Bright Horizons Family Solutions Competitors	1437	3442	5284	197	2.41

Bright Horizons Family Solutions currently has a consensus price target of $79.50, indicating a potential upside of 41.43%. As a group, “Diversified Consumer Services” companies have a potential upside of 57.22%. Given Bright Horizons Family Solutions’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Bright Horizons Family Solutions has less favorable growth aspects than its competitors.

Summary

Bright Horizons Family Solutions competitors beat Bright Horizons Family Solutions on 10 of the 13 factors compared.

Bright Horizons Family Solutions Company Profile

Bright Horizons Family Solutions Inc. provides early education and childcare, back-up care, educational advisory, and other workplace solutions services for employers and families in the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India. The company operates in three segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory and Other Services. The Full Service Center-Based Child Care segment offers traditional center-based child care and early education, preschool, and elementary education services. The Back-Up Care segment provides center-based back-up child care, in-home child and adult/elder dependent care, school-age camps, virtual tutoring, and self-sourced reimbursed care services through child care centers, school-age campuses, and in-home caregivers, as well as the back-up care network. The Educational Advisory and Other Services segment offers tuition assistance and student loan repayment program administration, workforce education, and related educational consulting services, as well as college admissions and college financial advisory services. The company was formerly known as Bright Horizons Solutions Corp. and changed its name to Bright Horizons Family Solutions Inc. in July 2012. Bright Horizons Family Solutions Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.