Bright Horizons Family Solutions (NYSE:BFAM) versus Sodexo (OTCMKTS:SDXAY) Head to Head Analysis

Sodexo (OTCMKTS:SDXAY) and Bright Horizons Family Solutions (NYSE:BFAM) are both mid-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Valuation and Earnings

This table compares Sodexo and Bright Horizons Family Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sodexo	$26.49 billion	0.30	$764.85 million	N/A	N/A
Bright Horizons Family Solutions	$2.87 billion	1.94	$140.19 million	$3.48	28.26

Sodexo has higher revenue and earnings than Bright Horizons Family Solutions.

Analyst Ratings

This is a summary of current ratings and recommmendations for Sodexo and Bright Horizons Family Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sodexo	2	7	0	0	1.78
Bright Horizons Family Solutions	1	3	4	1	2.56

Bright Horizons Family Solutions has a consensus price target of $128.71, suggesting a potential upside of 30.87%. Given Bright Horizons Family Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Bright Horizons Family Solutions is more favorable than Sodexo.

Risk and Volatility

Sodexo has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Bright Horizons Family Solutions has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Profitability

This table compares Sodexo and Bright Horizons Family Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sodexo	N/A	N/A	N/A
Bright Horizons Family Solutions	6.34%	15.12%	5.27%

Summary

Bright Horizons Family Solutions beats Sodexo on 9 of the 11 factors compared between the two stocks.

About Sodexo

Sodexo S.A. provides food services and facilities management services worldwide. It offers various on-site services, which includes corporate services, energy and resources, government and agencies, and other services; healthcare and seniors; and learning solutions to schools and universities. The company also provides food services comprising retail service, food delivery, and meal and food vouchers, as well as digital food ordering services; savings and purchase solutions, data and digital tools, and advisory services and client support; and work-life balance and employee experience solutions. In addition, it offers facility management services, including technical service management, assets management, building maintenance, access control, deep cleaning, energy management, space planning, project management, front-of-house services, grounds maintenance, waste management, HVAC systems, mail management, commercial cleaning, workspace management, and pest control. services. The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008. Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France.

About Bright Horizons Family Solutions

Bright Horizons Family Solutions Inc. provides early education and childcare, back-up care, educational advisory, and other workplace solutions services for employers and families in the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India. The company operates in three segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory and Other Services. The Full Service Center-Based Child Care segment offers traditional center-based child care and early education, preschool, and elementary education services. The Back-Up Care segment provides center-based back-up child care, in-home child and adult/elder dependent care, school-age camps, virtual tutoring, and self-sourced reimbursed care services through child care centers, school-age campuses, and in-home caregivers, as well as the back-up care network. The Educational Advisory and Other Services segment offers tuition assistance and student loan repayment program administration, workforce education, and related educational consulting services, as well as college admissions and college financial advisory services. The company was formerly known as Bright Horizons Solutions Corp. and changed its name to Bright Horizons Family Solutions Inc. in July 2012. Bright Horizons Family Solutions Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.