Bright Horizons Family Solutions Inc. (BFAM) vs Frontdoor Inc. (FTDR)

Bright Horizons Family Solutions Inc. and Frontdoor Inc. are both Personal Services companies. Frontdoor Inc. is the larger, with a market value of $5.0B against $3.2B — 1.5× the size. Frontdoor Inc. trades at the lower P/E: 19.2× against 20.6×. Frontdoor Inc. grew revenue faster over the last twelve months: 9.16% against 8.51%. Frontdoor Inc. has the higher net margin (12.7% vs 5.78%) and the higher return on invested capital (27.6% vs 9.41%). Across the 22 metrics below, Frontdoor Inc. leads on 15 and Bright Horizons Family Solutions Inc. on 7.

Valuation

Metric BFAM FTDR Personal Services median
P/E 20.65 19.22 15.23
P/S 1.12 2.41 1.12
P/B 3.60 18.21 3.60
Price to free cash flow 14.33 13.40 13.38
EV/EBITDA 11.08 10.45 9.17
EV/Sales 1.49 2.66 1.49
Earnings yield 4.84% 5.20% 4.97%
Free cash flow yield 6.98% 7.46% 4.32%

Profitability

Metric BFAM FTDR Personal Services median
Gross margin 23.49% 55.55% 30.06%
Operating margin 10.27% 21.48% 10.27%
Net margin 5.78% 12.72% 3.09%
Free cash flow margin 7.82% 17.99% 4.96%
Return on equity 14.94% 101.68% 0.00%
Return on assets 4.54% 12.53% 0.00%
Return on invested capital 9.41% 27.62% 5.36%

Growth

Metric BFAM FTDR Personal Services median
Revenue growth (TTM) 8.51% 9.16% 5.87%
EPS growth (last fiscal year) 40.00% 13.62% —
Revenue growth, 5-year CAGR 14.13% 7.26% 4.52%
Net income growth, 5-year CAGR 48.35% 17.89% 5.79%

Health

Metric BFAM FTDR Personal Services median
Debt to equity 1.36 4.08 1.93
Current ratio 0.48 1.59 0.90
Net debt to EBITDA 1.98 1.15 1.31

Dividend

Metric BFAM FTDR Personal Services median
Dividend yield — — 1.91%
Payout ratio 0.00 0.00 0.11

Size

Metric BFAM FTDR Personal Services median
Market cap 3.23b 4.95b 133.27m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack