Head-To-Head Survey: APi Group (NYSE:APG) vs. Bright Horizons Family Solutions (NYSE:BFAM)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Bright Horizons Family Solutions and APi Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bright Horizons Family Solutions	1	5	4	0	2.30
APi Group	0	2	7	1	2.90

Bright Horizons Family Solutions presently has a consensus target price of $107.11, indicating a potential upside of 43.64%. APi Group has a consensus target price of $48.57, indicating a potential upside of 9.37%. Given Bright Horizons Family Solutions’ higher probable upside, equities research analysts clearly believe Bright Horizons Family Solutions is more favorable than APi Group.

Institutional & Insider Ownership

86.6% of APi Group shares are held by institutional investors. 1.2% of Bright Horizons Family Solutions shares are held by company insiders. Comparatively, 17.0% of APi Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Bright Horizons Family Solutions has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, APi Group has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bright Horizons Family Solutions	6.58%	17.27%	6.17%
APi Group	3.70%	37.92%	14.19%

Earnings and Valuation

This table compares Bright Horizons Family Solutions and APi Group”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	1.44	$193.12 million	$3.36	22.19
APi Group	$7.91 billion	2.42	$250.00 million	($0.76)	-58.44

APi Group has higher revenue and earnings than Bright Horizons Family Solutions. APi Group is trading at a lower price-to-earnings ratio than Bright Horizons Family Solutions, indicating that it is currently the more affordable of the two stocks.

Summary

APi Group beats Bright Horizons Family Solutions on 11 of the 15 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 APi Group

APi Group Corporation provides safety and specialty services worldwide. It operates through Safety Services and Specialty Services segments. The Safety Services segment offers solutions focusing on end-to-end integrated occupancy systems, such as fire protection services; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, and service of these integrated systems. The Specialty Services segment provides various infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure. This segment offers engineering and design, fabrication, installation, maintenance service and repair, retrofitting and upgrading services, pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry. It serves customers in the public and private sectors, including commercial, industrial, distribution and fulfillment centers, manufacturing, education, healthcare, telecom, utilities, transmission and integrity, high tech, entertainment, government, and infrastructure markets. The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019. APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.