Analyzing Black Diamond Group (OTCMKTS:BDIMF) & Bright Horizons Family Solutions (NYSE:BFAM)

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

Profitability

This table compares Bright Horizons Family Solutions and Black Diamond Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bright Horizons Family Solutions	6.98%	17.07%	5.99%
Black Diamond Group	8.23%	10.76%	4.79%

Volatility and Risk

Bright Horizons Family Solutions has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Black Diamond Group has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Bright Horizons Family Solutions and Black Diamond Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bright Horizons Family Solutions	1	4	3	0	2.25
Black Diamond Group	0	0	1	0	3.00

Bright Horizons Family Solutions presently has a consensus target price of $128.29, indicating a potential upside of 25.10%. Given Bright Horizons Family Solutions’ higher possible upside, analysts plainly believe Bright Horizons Family Solutions is more favorable than Black Diamond Group.

Valuation & Earnings

This table compares Bright Horizons Family Solutions and Black Diamond Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bright Horizons Family Solutions	$2.69 billion	2.16	$140.19 million	$3.48	29.47
Black Diamond Group	$294.14 million	2.72	$18.72 million	$0.41	28.56

Bright Horizons Family Solutions has higher revenue and earnings than Black Diamond Group. Black Diamond Group is trading at a lower price-to-earnings ratio than Bright Horizons Family Solutions, indicating that it is currently the more affordable of the two stocks.

Summary

Bright Horizons Family Solutions beats Black Diamond Group on 9 of the 12 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 Black Diamond Group

Black Diamond Group Limited rents and sells modular space and workforce accommodation solutions. It operates through two segments, Modular Space Solutions and Workforce Solutions. The Modular Space Solutions segment provides modular space rentals to customers in the construction, real estate development, education, manufacturing, health care, financial, government, and defense industries in North America. Its products include office units, lavatories, storage units, large multi-unit office complexes, classroom facilities, banking and health care facilities, high security modular buildings, custom manufactured modular facilities, blast resistant structures, SmartSpace interchangeable paneled units, and storage containers. This segment also sells new and used space rentals units; and provides delivery, installation, project management, and ancillary rental items, products, and services. The Workforce Solutions segment provides workforce housing solutions, including rental of accommodations and surface equipment, and provision of turnkey lodging and travel management logistics services in Canada, the United States, and Australia. This segment also provides associated services, such as installation, transportation, dismantlement, and sale of used fleet assets. This segment primarily serves the resource, infrastructure, construction, disaster recovery, and education sectors. It also provides specialized field rentals to oil and gas industries. The company markets its rental assets, custom sales, and ancillary products and services through in-house sales personnel, its website, social media, web campaigns, and its digital marketplace. Black Diamond Group Limited was founded in 2003 and is headquartered in Calgary, Canada.