Contrasting Wolters Kluwer (OTCMKTS:WTKWY) & Bright Horizons Family Solutions (NYSE:BFAM)

Bright Horizons Family Solutions (NYSE:BFAM) and Wolters Kluwer (OTCMKTS:WTKWY) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Risk & Volatility

Bright Horizons Family Solutions has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Wolters Kluwer has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Wolters Kluwer shares are owned by institutional investors. 1.2% of Bright Horizons Family Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bright Horizons Family Solutions	1	5	4	0	2.30
Wolters Kluwer	0	0	3	1	3.25

Bright Horizons Family Solutions presently has a consensus target price of $107.11, indicating a potential upside of 51.05%. Given Bright Horizons Family Solutions’ higher probable upside, equities analysts clearly believe Bright Horizons Family Solutions is more favorable than Wolters Kluwer.

Valuation & Earnings

This table compares Bright Horizons Family Solutions and Wolters Kluwer”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bright Horizons Family Solutions	$2.93 billion	1.37	$193.12 million	$3.36	21.10
Wolters Kluwer	$6.40 billion	2.63	$1.17 billion	N/A	N/A

Wolters Kluwer has higher revenue and earnings than Bright Horizons Family Solutions.

Profitability

This table compares Bright Horizons Family Solutions and Wolters Kluwer’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%
Wolters Kluwer	N/A	N/A	N/A

Summary

Bright Horizons Family Solutions beats Wolters Kluwer on 7 of the 13 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 Wolters Kluwer

Wolters Kluwer N.V. provides professional information, software solutions, and services in the Netherlands, rest of Europe, the United States, Canada, the Asia Pacific, and internationally. The company operates through Health; Tax & Accounting; Financial & Corporate Compliance; Legal & Regulatory; and Corporate Performance & ESG segments. The Health segment offers clinical technology and evidence-based solutions that drive effective decision-making and improved outcomes across healthcare. It serves hospitals, healthcare organizations, clinicians, students, schools, libraries, payers, life sciences, and pharmacies. The Tax & Accounting segment offers solutions that help tax, accounting, and audit professionals to drive productivity, navigate change, and deliver better outcomes. It serves accounting firms, tax and auditing departments, businesses of all sizes, government agencies, libraries, and universities. The Financial & Corporate Compliance segment offers solutions for legal entity compliance and banking product compliance. It serves corporations, small businesses, law firms, banks, non-bank lenders, credit unions, insurers, and securities firms. The Legal & Regulatory segment provides information, insights, and workflow solutions for changing regulatory obligations, managing risk, and increasing efficiency. It provides solutions for legal and compliance professionals in law firms, corporate legal departments, universities, and government organizations. The Corporate Performance & ESG segment offers enterprise software to drive financial and sustainability performance and manage risks, meet reporting requirements, improve safety and productivity, and reduce environmental impact. It serves corporate finance, audit, planning, risk, environmental, health and safety, operational risk management, and sustainability professionals in corporations, banks, and governments. Wolters Kluwer N.V. was founded in 1836 and is based in Alphen aan den Rijn, the Netherlands.