Japan Tob (OTCMKTS:JAPAY) vs. Bright Horizons Family Solutions (NYSE:BFAM) Head to Head Contrast

Japan Tob (OTCMKTS:JAPAY) and Bright Horizons Family Solutions (NYSE:BFAM) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Japan Tob and Bright Horizons Family Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Tob	1	1	1	0	2.00
Bright Horizons Family Solutions	2	3	4	0	2.22

Japan Tob presently has a consensus price target of $17.00, suggesting a potential downside of 21.33%. Bright Horizons Family Solutions has a consensus price target of $95.88, suggesting a potential upside of 27.25%. Given Bright Horizons Family Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Bright Horizons Family Solutions is more favorable than Japan Tob.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Japan Tob	N/A	N/A	N/A
Bright Horizons Family Solutions	5.78%	20.09%	6.35%

Valuation and Earnings

This table compares Japan Tob and Bright Horizons Family Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Japan Tob	$23.20 billion	3.31	$3.42 billion	$1.00	21.61
Bright Horizons Family Solutions	$2.93 billion	1.35	$193.12 million	$3.16	23.84

Japan Tob has higher revenue and earnings than Bright Horizons Family Solutions. Japan Tob 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.

Risk & Volatility

Japan Tob has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, Bright Horizons Family Solutions has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Summary

Bright Horizons Family Solutions beats Japan Tob on 9 of the 12 factors compared between the two stocks.

About Japan Tob

Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, pharmaceuticals, and processed foods in Japan and internationally. The company operates through three segments: Tobacco Business, Pharmaceutical, and Processed Food. It offers tobacco products, such as cigarettes, heat-not-burn tobacco products, E-vapor products, fine cut tobacco products, cigars, pipes, smokeless tobacco products, and hookah and kretek products. The company also provides reduced-risk products, including infused tobacco capsules and heated tobacco sticks. In addition, it researches and develops, manufactures, and sells prescription drugs for the therapeutic areas, such as cardiovascular, kidney and metabolism, immunity/inflammation, and central nervous system. Further, the company provides frozen and room-temperature products, such as frozen udon noodles, packed rice, and frozen okonomiyaki; bakery products; and seasonings, including yeast extracts, assembled, kelp and bonito extracts, and oyster sauces. It offers its products under the Winston, Camel, MEVIUS, and LD brands. Japan Tobacco Inc. was incorporated in 1985 and is headquartered in Tokyo, Japan.

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.