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 $6.6B against $2.7B — 2.5× the size. Bright Horizons Family Solutions Inc. has negative trailing earnings, so its P/E is not meaningful; Frontdoor Inc. trades at 23.1×. Frontdoor Inc. grew revenue faster over the last twelve months: 6.80% against 6.70%. Frontdoor Inc. has the higher net margin (13.0% vs −4.38%) and the lower return on invested capital (0.00% vs 0.10%). Across the 21 metrics below, Bright Horizons Family Solutions Inc. leads on 12 and Frontdoor Inc. on 9.

Valuation

Metric BFAM FTDR Personal Services median
P/E n/m 23.08 14.33
P/S 0.87 2.97 1.07
P/B 4.19 22.83 4.19
Price to free cash flow 10.52 16.50 9.89
EV/EBITDA 9.86 12.93 9.86
EV/Sales 1.28 3.23 1.28
Earnings yield (5.34%) 4.33% 3.58%
Free cash flow yield 9.51% 6.06% 6.06%

Profitability

Metric BFAM FTDR Personal Services median
Gross margin 22.80% 54.97% 32.10%
Operating margin 0.10% 0.00% 5.04%
Net margin (4.38%) 12.96% (2.19%)
Free cash flow margin 8.29% 18.00% 8.29%
Return on equity (12.99%) 0.00% 0.00%
Return on assets (3.65%) 12.72% 0.00%
Return on invested capital 0.10% 0.00% 0.10%

Growth

Metric BFAM FTDR Personal Services median
Revenue growth (TTM) 6.70% 6.80% 4.90%
EPS growth (last fiscal year) 40.00% 13.62% 23.84%
Revenue growth, 5-year CAGR 14.13% 7.26% 4.52%
Net income growth, 5-year CAGR 48.35% 17.89% 10.19%

Health

Metric BFAM FTDR Personal Services median
Debt to equity 2.13 3.66 2.13
Current ratio 0.45 1.75 1.13
Net debt to EBITDA 1.98 1.15 1.98

Dividend

Metric BFAM FTDR Personal Services median
Dividend yield — — —
Payout ratio — — —

Size

Metric BFAM FTDR Personal Services median
Market cap 2.66b 6.61b 571.45m

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