Bright Horizons Family Solutions Inc. (BFAM) vs MEDIFAST INC (MED)

Bright Horizons Family Solutions Inc. and MEDIFAST INC are both Personal Services companies. Bright Horizons Family Solutions Inc. is the larger, with a market value of $3.2B against $133.3M — 24.2× the size. MEDIFAST INC has negative trailing earnings, so its P/E is not meaningful; Bright Horizons Family Solutions Inc. trades at 20.6×. Bright Horizons Family Solutions Inc. grew revenue faster over the last twelve months: 8.51% against −34.0%. Bright Horizons Family Solutions Inc. has the higher net margin (5.78% vs −8.08%) and the higher return on invested capital (9.41% vs −45.9%). Across the 20 metrics below, Bright Horizons Family Solutions Inc. leads on 13 and MEDIFAST INC on 7.

Valuation

Metric BFAM MED Personal Services median
P/E 20.65 n/m 15.23
P/S 1.12 0.43 1.12
P/B 3.60 0.69 3.60
Price to free cash flow 14.33 n/m 13.38
EV/EBITDA 11.08 2.75 9.17
EV/Sales 1.49 (0.05) 1.49
Earnings yield 4.84% (19.15%) 4.97%
Free cash flow yield 6.98% (14.25%) 4.32%

Profitability

Metric BFAM MED Personal Services median
Gross margin 23.49% 69.24% 30.06%
Operating margin 10.27% (6.15%) 10.27%
Net margin 5.78% (8.08%) 3.09%
Free cash flow margin 7.82% 2.41% 4.96%
Return on equity 14.94% (12.42%) 0.00%
Return on assets 4.54% (9.67%) 0.00%
Return on invested capital 9.41% (45.91%) 5.36%

Growth

Metric BFAM MED Personal Services median
Revenue growth (TTM) 8.51% (34.03%) 5.87%
EPS growth (last fiscal year) 40.00% (994.74%) —
Revenue growth, 5-year CAGR 14.13% (16.22%) 4.52%
Net income growth, 5-year CAGR 48.35% 0.00% 5.79%

Health

Metric BFAM MED Personal Services median
Debt to equity 1.36 0.00 1.93
Current ratio 0.48 4.86 0.90
Net debt to EBITDA 1.98 260.55 1.31

Dividend

Metric BFAM MED Personal Services median
Dividend yield — 9.05% 1.91%
Payout ratio 0.00 0.54 0.11

Size

Metric BFAM MED Personal Services median
Market cap 3.23b 133.27m 133.27m

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