Head to Head Comparison: Bright Horizons Family Solutions (NYSE:BFAM) and SGS (OTCMKTS:SGSOY)

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

Earnings & Valuation

This table compares SGS 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
SGS	$8.38 billion	2.79	$806.28 million	N/A	N/A
Bright Horizons Family Solutions	$2.93 billion	1.29	$193.12 million	$3.32	21.73

SGS has higher revenue and earnings than Bright Horizons Family Solutions.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SGS	N/A	N/A	N/A
Bright Horizons Family Solutions	6.35%	18.01%	6.18%

Analyst Recommendations

This is a summary of current ratings for SGS and Bright Horizons Family Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SGS	1	3	2	2	2.62
Bright Horizons Family Solutions	2	3	4	0	2.22

Bright Horizons Family Solutions has a consensus target price of $96.00, suggesting a potential upside of 33.04%. Given Bright Horizons Family Solutions’ higher probable upside, analysts clearly believe Bright Horizons Family Solutions is more favorable than SGS.

Risk and Volatility

SGS has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Bright Horizons Family Solutions has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Summary

Bright Horizons Family Solutions beats SGS on 6 of the 11 factors compared between the two stocks.

About SGS

SGS SA provides inspection, testing, and verification services in Europe, Africa, the Middle East, the Americas, and the Asia Pacific. It operates in five segments: Connectivity & Products, Health & Nutrition, Industries & Environment, Natural Resources, and Business Assurance. The company provides laboratory testing, product inspection and consulting, process assessment, technical and transactional assistance; and automotive, connectivity, softlines and accessories, and hardgoods, toys, and juvenile products, as well as government and trade facilitation services. In addition, it offers a range of testing, inspection and certification solutions for the crop science, food, health science, and cosmetics and hygiene industries; field services, technical assessment, and advisory services; and services related to industrial, public health and safety, environmental testing, and public mandates. Further, it provides assessment, auditing, and certification, supply chain assurance, training, consulting, and sustainability assurance services; agricultural commodities, geochemistry, laboratory testing petroleum and chemicals, metallurgy and consulting, mineral and metal commodities, and oil, gas, and chemical commodities; and sustainability solutions. The company serves the agriculture and food, chemical, construction, consumer and retail, energy, industrial manufacturing, life sciences, mining, oil and gas, public, and transportation sectors. SGS SA was founded in 1878 and is headquartered in Geneva, Switzerland.

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.