Bright Horizons Family Solutions Inc (BFAM)vsH&R Block Inc (HRB)
BFAM
Bright Horizons Family Solutions Inc
$79.74
+0.87%
CONSUMER CYCLICAL · Cap: $4.47B
HRB
H&R Block Inc
$30.78
-0.58%
CONSUMER CYCLICAL · Cap: $3.90B
Smart Verdict
WallStSmart Research — data-driven comparison
H&R Block Inc generates 29% more annual revenue ($3.79B vs $2.93B). HRB leads profitability with a 16.2% profit margin vs 6.6%. HRB appears more attractively valued with a PEG of 0.58. HRB earns a higher WallStSmart Score of 67/100 (B-).
BFAM
Buy51
out of 100
Grade: C-
HRB
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-257.1%
Fair Value
$22.85
Current Price
$79.74
$56.89 premium
Margin of Safety
+83.2%
Fair Value
$177.02
Current Price
$30.78
$146.24 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Attractively priced relative to earnings
Every $100 of equity generates 68 in profit
Growing faster than its price suggests
Earnings expanding 21.6% YoY
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
6.6% margin — thin
Earnings declined 23.6%
Grey zone — moderate risk
Negative free cash flow — burning cash
Operating margin of -1.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : BFAM
BFAM has a balanced fundamental profile.
Bull Case : HRB
The strongest argument for HRB centers on P/E Ratio, Return on Equity, PEG Ratio. Profitability is solid with margins at 16.2% and operating margin at -1.5%. Revenue growth of 11.1% demonstrates continued momentum.
Bear Case : BFAM
The primary concerns for BFAM are PEG Ratio, Altman Z-Score, Profit Margin.
Bear Case : HRB
The primary concerns for HRB are Altman Z-Score, Free Cash Flow, Operating Margin.
Key Dynamics to Monitor
BFAM profiles as a value stock while HRB is a mature play — different risk/reward profiles.
BFAM carries more volatility with a beta of 1.41 — expect wider price swings.
HRB is growing revenue faster at 11.1% — sustainability is the question.
BFAM generates stronger free cash flow (112M), providing more financial flexibility.
Bottom Line
HRB scores higher overall (67/100 vs 51/100), backed by strong 16.2% margins and 11.1% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Bright Horizons Family Solutions Inc
CONSUMER CYCLICAL · PERSONAL SERVICES · USA
Bright Horizons Family Solutions Inc. provides child care and early education services, supportive care services, educational counseling services, and other workplace solutions for employers and families. The company is headquartered in Newton, Massachusetts.
H&R Block Inc
CONSUMER CYCLICAL · PERSONAL SERVICES · USA
H&R Block, Inc., provides services and products for assisted preparation of income tax returns and self-preparation of income tax returns (DIY) to the general public, primarily in the United States, Canada and Australia. The company is headquartered in Kansas City, Missouri.
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