Bright Horizons Family Solutions Inc. (BFAM) vs Service Corporation International (SCI)

Bright Horizons Family Solutions Inc. and Service Corporation International are both Personal Services companies. Service Corporation International is the larger, with a market value of $10.6B against $3.2B — 3.3× the size. Service Corporation International trades at the lower P/E: 20.1× against 20.6×. Bright Horizons Family Solutions Inc. grew revenue faster over the last twelve months: 8.51% against 2.89%. Service Corporation International has the higher net margin (12.3% vs 5.78%) and the lower return on invested capital (9.28% vs 9.41%). Across the 22 metrics below, Bright Horizons Family Solutions Inc. leads on 14 and Service Corporation International on 8.

Valuation

Metric BFAM SCI Personal Services median
P/E 20.65 20.11 15.23
P/S 1.12 2.45 1.12
P/B 3.60 6.96 3.60
Price to free cash flow 14.33 16.87 13.38
EV/EBITDA 11.08 11.83 9.17
EV/Sales 1.49 3.60 1.49
Earnings yield 4.84% 4.97% 4.97%
Free cash flow yield 6.98% 5.93% 4.32%

Profitability

Metric BFAM SCI Personal Services median
Gross margin 23.49% 26.03% 30.06%
Operating margin 10.27% 22.37% 10.27%
Net margin 5.78% 12.30% 3.09%
Free cash flow margin 7.82% 14.53% 4.96%
Return on equity 14.94% 34.70% 0.00%
Return on assets 4.54% 2.89% 0.00%
Return on invested capital 9.41% 9.28% 5.36%

Growth

Metric BFAM SCI Personal Services median
Revenue growth (TTM) 8.51% 2.89% 5.87%
EPS growth (last fiscal year) 40.00% 7.65% —
Revenue growth, 5-year CAGR 14.13% 4.18% 4.52%
Net income growth, 5-year CAGR 48.35% 1.01% 5.79%

Health

Metric BFAM SCI Personal Services median
Debt to equity 1.36 3.45 1.93
Current ratio 0.48 0.53 0.90
Net debt to EBITDA 1.98 3.69 1.31

Dividend

Metric BFAM SCI Personal Services median
Dividend yield — 1.68% 1.91%
Payout ratio 0.00 0.34 0.11

Size

Metric BFAM SCI Personal Services median
Market cap 3.23b 10.60b 133.27m

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