Reviewing Bright Horizons Family Solutions (BFAM) & Its Rivals

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

Institutional & Insider Ownership

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

Risk and Volatility

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

Profitability

This table compares Bright Horizons Family Solutions and its rivals’ 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	-3.00%	-28.34%	2.46%

Earnings and Valuation

This table compares Bright Horizons Family Solutions and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bright Horizons Family Solutions	$2.93 billion	$193.12 million	-18.09
Bright Horizons Family Solutions Competitors	$3.23 billion	$219.82 million	11.78

Bright Horizons Family Solutions’ rivals 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 rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings for Bright Horizons Family Solutions and its rivals, 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	1444	3449	5291	197	2.41

Bright Horizons Family Solutions currently has a consensus target price of $79.50, indicating a potential upside of 48.01%. As a group, “Diversified Consumer Services” companies have a potential upside of 63.32%. Given Bright Horizons Family Solutions’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Bright Horizons Family Solutions has less favorable growth aspects than its rivals.

Summary

Bright Horizons Family Solutions rivals 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.