Bright Horizons Family Solutions (BFAM) versus Regis Corporation (RGS) Critical Contrast
Bright Horizons Family Solutions (NYSE: BFAM) and Regis Corporation (NYSE:RGS) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitabiliy.
Institutional and Insider Ownership
99.4% of Bright Horizons Family Solutions shares are owned by institutional investors. Comparatively, 96.4% of Regis Corporation shares are owned by institutional investors. 2.9% of Bright Horizons Family Solutions shares are owned by insiders. Comparatively, 24.0% of Regis Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Bright Horizons Family Solutions has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Regis Corporation has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.
This is a breakdown of current ratings for Bright Horizons Family Solutions and Regis Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bright Horizons Family Solutions||0||3||4||0||2.57|
Bright Horizons Family Solutions presently has a consensus target price of $78.67, suggesting a potential upside of 2.14%. Given Bright Horizons Family Solutions’ higher probable upside, analysts clearly believe Bright Horizons Family Solutions is more favorable than Regis Corporation.
Valuation & Earnings
This table compares Bright Horizons Family Solutions and Regis Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Bright Horizons Family Solutions||$1.61 billion||2.86||$289.71 million||$1.83||42.09|
|Regis Corporation||$1.72 billion||0.28||$71.85 million||($0.26)||-40.31|
Bright Horizons Family Solutions has higher revenue, but lower earnings than Regis Corporation. Regis Corporation 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.
This table compares Bright Horizons Family Solutions and Regis Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bright Horizons Family Solutions||6.93%||18.51%||5.76%|
Bright Horizons Family Solutions beats Regis Corporation on 9 of the 12 factors compared between the two stocks.
Bright Horizons Family Solutions Company Profile
Bright Horizons Family Solutions Inc. is a provider of child care, early education and other services. The Company provides services under multi-year contracts with employers offering child care and other dependent care solutions as part of their employee benefits packages. Its segments include full service center-based care services, back-up dependent care services and other educational advisory services. Full service center-based care segment includes center-based child care, preschool and elementary education. Back-up dependent care segment includes center-based back-up child care, in-home well child care, in home mildly ill child care and adult/elder care. The Company’s other educational advisory services segment includes its college preparation and admissions advisory services, as well as tuition reimbursement administration and educational advising services. The Company operates over 300 nurseries in the United Kingdom and approximately 1,000 across the world.
Regis Corporation Company Profile
Regis Corporation owns, franchises and operates beauty salons. The Company operates through three segments: North American Value, North American Premium and International. As of June 30, 2016, the Company’s North American Value salon operations consisted of 5,784 Company-owned salons and 2,496 franchised salons operating in the United States, Canada and Puerto Rico. As of June 30, 2016, the Company’s North American Premium salon operations consisted of 680 Company-owned salons operating in the United States, Canada, and Puerto Rico. As of June 30, 2016, the Company’s International operations consisted of 328 Company-owned salons in the United Kingdom. The services supplied by its salons include haircutting and styling, hair coloring and other services. As of June 30, 2016, it owned, franchised or held ownership interests in 9,483 locations around the world. The Company’s salons operate primarily under the trade names of SmartStyle, Supercuts, MasterCuts, Regis Salons and Cost Cutters.
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