Bright Horizons Family Solutions (NYSE:BFAM – Get Free Report) and Afya (NASDAQ:AFYA – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.
Earnings & Valuation
This table compares Bright Horizons Family Solutions and Afya”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bright Horizons Family Solutions | $2.93 billion | 1.19 | $193.12 million | $3.16 | 22.81 |
| Afya | $662.01 million | 2.11 | $134.77 million | $1.64 | 9.09 |
Risk & Volatility
Bright Horizons Family Solutions has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Afya has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.
Profitability
This table compares Bright Horizons Family Solutions and Afya’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bright Horizons Family Solutions | 5.78% | 20.09% | 6.35% |
| Afya | 20.55% | 17.58% | 9.09% |
Analyst Ratings
This is a summary of current recommendations and price targets for Bright Horizons Family Solutions and Afya, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bright Horizons Family Solutions | 2 | 3 | 4 | 0 | 2.22 |
| Afya | 1 | 5 | 0 | 0 | 1.83 |
Bright Horizons Family Solutions presently has a consensus target price of $95.88, suggesting a potential upside of 33.00%. Afya has a consensus target price of $18.00, suggesting a potential upside of 20.72%. Given Bright Horizons Family Solutions’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Bright Horizons Family Solutions is more favorable than Afya.
Insider and Institutional Ownership
88.0% of Afya shares are owned by institutional investors. 1.4% of Bright Horizons Family Solutions shares are owned by insiders. Comparatively, 0.8% of Afya shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Bright Horizons Family Solutions beats Afya on 10 of the 14 factors compared between the two stocks.
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.
About Afya
Afya Limited, through its subsidiaries, operates as a medical education group in Brazil. The company operates through three segments: Undergrad, Continuing Education, and Digital Services. It offers educational products and services, including medical schools, medical residency preparatory courses, graduate courses, and other programs to lifelong medical learners enrolled across its distribution network, as well as to third-party medical schools. The company also provides digital health services, such as subscription-based mobile app and website portal that focuses on assisting health professionals and students with clinical decision-making through tools, such as medical calculators, charts, and updated content, as well as prescriptions, clinical scores, medical procedures and laboratory exams, and others. It offers health sciences courses, which comprise medicine, dentistry, nursing, radiology, psychology, pharmacy, physical education, physiotherapy, nutrition, and biomedicine; and degree programs and courses in other subjects and disciplines, including undergraduate and post graduate courses in business administration, accounting, law, civil engineering, industrial engineering, and pedagogy. In addition, the company provides medical postgraduate specialization programs; printed and digital content; and an online medical education platform and practical medical training services. The company was founded in 1999 and is headquartered in Nova Lima, Brazil.
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