Bright Horizons Family Solutions vs Frontdoor
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The short version
- Bright Horizons Family Solutions is the larger business, with $2.9B of revenue in fiscal 2025 against $2.1B for Frontdoor.
- Frontdoor grew revenue faster (13.6%, against 9.2%).
- Frontdoor turned more of its sales into free cash flow (18.6% FCF margin, against 8.8%).
- Frontdoor earned a higher return on the capital invested in it (33.9%, against 11.2%).
- Investors pay more for each dollar of Bright Horizons Family Solutions’s earnings: a P/E of 22.5x against 22.3x for Frontdoor.
| Latest fiscal year | BFAM · FY25 | FTDR · FY25 |
|---|---|---|
| Size | ||
| Market cap | $3.7B | $6.0B |
| Revenue | $2.9B | $2.1B |
| Free cash flow | $259M | $390M |
| Net income | $193M | $255M |
| Growth | ||
| Revenue growth | 9.2% | 13.6% |
| 5-year growth | 14.1% | 7.3% |
| Share count change | −1.8% | −4.5% |
| Profitability | ||
| Gross margin | 23.8% | 55.3% |
| Operating margin | 10.7% | — |
| Net margin | 6.6% | 12.2% |
| FCF margin | 8.8% | 18.6% |
| Return on capital | 11.2% | 33.9% |
| Return on equity | 14.8% | 106.0% |
| Balance sheet | ||
| Net debt | $592M | $607M |
| Net debt / EBITDA | 1.5x | 1.2x |
| Dividends and buybacks | $225M | $283M |
| Valuation & quality | ||
| P/E | 22.5x | 22.3x |
| Piotroski F-score | 8 | 7 |
Revenue
FY16
BFAM $1.6B
FTDR $1.0B
FY17
BFAM $1.7B
FTDR $1.2B
FY18
BFAM $1.9B
FTDR $1.3B
FY19
BFAM $2.1B
FTDR $1.4B
FY20
BFAM $1.5B
FTDR $1.5B
FY21
BFAM $1.8B
FTDR $1.6B
FY22
BFAM $2.0B
FTDR $1.7B
FY23
BFAM $2.4B
FTDR $1.8B
FY24
BFAM $2.7B
FTDR $1.8B
FY25
BFAM $2.9B
FTDR $2.1B
BFAM
FTDR
Operating margin
FY16
BFAM 12.6%
FTDR —
FY17
BFAM 11.8%
FTDR —
FY18
BFAM 12.6%
FTDR —
FY19
BFAM 13.0%
FTDR —
FY20
BFAM 3.5%
FTDR —
FY21
BFAM 7.4%
FTDR —
FY22
BFAM 7.8%
FTDR —
FY23
BFAM 7.1%
FTDR —
FY24
BFAM 9.2%
FTDR —
FY25
BFAM 10.7%
FTDR —
BFAM
FTDR
Free cash flow
FY16
BFAM $138M
FTDR $144M
FY17
BFAM $160M
FTDR $179M
FY18
BFAM $202M
FTDR $162M
FY19
BFAM $219M
FTDR $178M
FY20
BFAM $125M
FTDR $175M
FY21
BFAM $164M
FTDR $154M
FY22
BFAM $118M
FTDR $102M
FY23
BFAM $165M
FTDR $170M
FY24
BFAM $240M
FTDR $231M
FY25
BFAM $259M
FTDR $390M
BFAM
FTDR
Return on capital
FY16
BFAM 7.8%
FTDR —
FY17
BFAM 11.4%
FTDR —
FY18
BFAM 11.0%
FTDR —
FY19
BFAM 11.5%
FTDR 56.9%
FY20
BFAM 2.8%
FTDR 45.3%
FY21
BFAM 5.3%
FTDR 46.6%
FY22
BFAM 5.8%
FTDR 25.5%
FY23
BFAM 5.2%
FTDR 51.7%
FY24
BFAM 8.4%
FTDR 37.8%
FY25
BFAM 11.2%
FTDR 33.9%
BFAM
FTDR
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.