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BFAM vs HD

BFAM
Bright Horizons Family Solutions Inc.
NEUTRAL
Price
$93.43
Market Cap
$5.31B
Sector
Consumer Cyclical
AI Confidence
72%
HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%

Valuation

P/E Ratio
BFAM
27.08
HD
23.1
Forward P/E
BFAM
18.32
HD
20.17
P/B Ratio
BFAM
3.72
HD
25.57
P/S Ratio
BFAM
1.85
HD
1.99
EV/EBITDA
BFAM
15.77
HD
15.68

Profitability

Gross Margin
BFAM
25.27%
HD
33.32%
Operating Margin
BFAM
15.05%
HD
10.08%
Profit Margin
BFAM
6.98%
HD
8.6%
ROE
BFAM
14.19%
HD
145.54%
ROA
BFAM
5.57%
HD
12.98%

Growth

Revenue Growth
BFAM
11.6%
HD
-3.8%
Earnings Growth
BFAM
45.7%
HD
-14.2%

Financial Health

Debt/Equity
BFAM
1.22
HD
5.14
Current Ratio
BFAM
0.54
HD
1.06
Quick Ratio
BFAM
0.43
HD
0.21

Dividends

Dividend Yield
BFAM
--
HD
2.83%
Payout Ratio
BFAM
0.0%
HD
64.65%

AI Verdict

BFAM NEUTRAL

BFAM exhibits a mixed financial profile with a weak Piotroski F-Score of 4/9 indicating marginal financial health, and no available Altman Z-Score limits distress risk assessment. Despite strong recent earnings growth (YoY EPS +45.7%) and solid revenue momentum (11.6% growth), the company faces significant liquidity concerns with a current ratio of 0.54 and quick ratio of 0.43, suggesting near-term solvency risks. Valuation is stretched relative to Graham’s defensive standard ($44.17 vs current $93.43), though growth investors may justify the premium given robust earnings progression and analyst target of $127.33. Insider selling activity and bearish technical trend counterbalance strong profitability metrics like ROE of 14.19% and improving margins.

Strengths
Strong year-over-year earnings growth of 45.7%, supported by consistent quarterly beats (3 of last 4 quarters)
High operating margin of 15.05% and solid ROE of 14.19%, outperforming sector average ROE of 7.11%
Revenue growth of 11.6% exceeds sector average of 7.52%
Risks
Piotroski F-Score of 4/9 indicates weak to stable financial health, raising concerns about balance sheet strength
Critical liquidity risk: current ratio of 0.54 and quick ratio of 0.43 are well below safe levels (below 1.0)
Debt/Equity of 1.22 is high, especially for a service company with cyclical exposure
HD BEARISH

HD shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Concerns include weak profitability or high valuation.

Strengths
Strong ROE of 145.5%
Risks
Premium vs Graham Number ($64.2)
Declining revenue (-3.8%)
High debt burden with D/E of 5.14

Compare Another Pair

BFAM vs HD: Head-to-Head Comparison

This page compares Bright Horizons Family Solutions Inc. (BFAM) and The Home Depot, Inc. (HD) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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