WallStSmart

Bright Horizons Family Solutions Inc (BFAM)vsFrontdoor Inc (FTDR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Bright Horizons Family Solutions Inc generates 40% more annual revenue ($2.93B vs $2.09B). FTDR leads profitability with a 12.2% profit margin vs 6.6%. BFAM appears more attractively valued with a PEG of 1.76. BFAM earns a higher WallStSmart Score of 51/100 (C-).

BFAM

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 7.3Quality: 5.3
Piotroski: 6/9Altman Z: 1.52

FTDR

Hold

50

out of 100

Grade: D+

Growth: 4.7Profit: 7.0Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BFAMSignificantly Overvalued (-257.1%)

Margin of Safety

-257.1%

Fair Value

$22.85

Current Price

$79.74

$56.89 premium

UndervaluedFair: $22.85Overvalued
FTDRSignificantly Overvalued (-139.9%)

Margin of Safety

-139.9%

Fair Value

$23.46

Current Price

$57.74

$34.28 premium

UndervaluedFair: $23.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BFAM0 strengths · Avg: 0/10

No standout strengths identified

FTDR2 strengths · Avg: 9.0/10
Return on EquityProfitability
106.0%10/10

Every $100 of equity generates 106 in profit

P/E RatioValuation
17.2x8/10

Attractively priced relative to earnings

Areas to Watch

BFAM4 concerns · Avg: 3.3/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.524/10

Distress zone — elevated risk

Profit MarginProfitability
6.6%3/10

6.6% margin — thin

EPS GrowthGrowth
-23.6%2/10

Earnings declined 23.6%

FTDR4 concerns · Avg: 3.3/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

Price/BookValuation
16.9x4/10

Trading at 16.9x book value

Operating MarginProfitability
3.0%3/10

Operating margin of 3.0%

EPS GrowthGrowth
-84.0%2/10

Earnings declined 84.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : BFAM

BFAM has a balanced fundamental profile.

Bull Case : FTDR

The strongest argument for FTDR centers on Return on Equity, P/E Ratio. Revenue growth of 13.4% demonstrates continued momentum.

Bear Case : BFAM

The primary concerns for BFAM are PEG Ratio, Altman Z-Score, Profit Margin.

Bear Case : FTDR

The primary concerns for FTDR are PEG Ratio, Price/Book, Operating Margin. Debt-to-equity of 3.80 is elevated, increasing financial risk.

Key Dynamics to Monitor

BFAM carries more volatility with a beta of 1.41 — expect wider price swings.

FTDR is growing revenue faster at 13.4% — sustainability is the question.

BFAM generates stronger free cash flow (112M), providing more financial flexibility.

Monitor PERSONAL SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BFAM scores higher overall (51/100 vs 50/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Bright Horizons Family Solutions Inc

CONSUMER CYCLICAL · PERSONAL SERVICES · USA

Bright Horizons Family Solutions Inc. provides child care and early education services, supportive care services, educational counseling services, and other workplace solutions for employers and families. The company is headquartered in Newton, Massachusetts.

Frontdoor Inc

CONSUMER CYCLICAL · PERSONAL SERVICES · USA

front door, inc. The company is headquartered in Memphis, Tennessee.

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