BFAM vs. ABALX

Last updated Jul 14, 2026

BFAM (Bright Horizons Family Solutions Inc.) is a stock, while ABALX (American Funds American Balanced Fund Class A) is Diversified Portfolio fund actively managed by American Funds. Over the past 10 years, BFAM returned 1.04%/yr vs 9.83%/yr for ABALX. At a 0.42 correlation, their price movements are largely independent.

Performance

BFAM vs. ABALX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Bright Horizons Family Solutions Inc. (BFAM) and American Funds American Balanced Fund Class A (ABALX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BFAM achieves a -26.27% return, which is significantly lower than ABALX's 9.44% return. Over the past 10 years, BFAM has underperformed ABALX with an annualized return of 1.04%, while ABALX has yielded a comparatively higher 9.83% annualized return.

BFAM

• 1D: 1.98%
• 1M: 15.28%
• 6M: -26.61%
• YTD: -26.27%
• 1Y: -35.19%
• 3Y*: -7.92%
• 5Y*: -12.90%
• 10Y*: 1.04%

ABALX

• 1D: -0.05%
• 1M: 0.69%
• 6M: 6.63%
• YTD: 9.44%
• 1Y: 19.43%
• 3Y*: 16.55%
• 5Y*: 9.28%
• 10Y*: 9.83%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BFAM vs. ABALX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BFAM Bright Horizons Family Solutions Inc.	-26.27%	-8.53%	17.63%	49.35%	-49.87%	-27.23%	15.10%	34.85%	18.56%	34.25%
ABALX American Funds American Balanced Fund Class A	9.44%	18.45%	14.63%	13.65%	-12.13%	15.75%	10.85%	18.60%	-3.35%	14.69%

Correlation

The correlation between BFAM and ABALX is -0.02, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.02
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.39
Correlation (10Y) Calculated over the trailing 10-year period	0.41
Correlation (All Time) Calculated using the full available price history since Jan 25, 2013	0.42

The correlation between BFAM and ABALX shifts across timeframes, from -0.02 (1 year) to 0.42 (all time), reflecting how their relationship changes across market environments.

Return for Risk

BFAM vs. ABALX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BFAM

BFAM Risk / Return Rank: 14
BFAM Sharpe Ratio Rank: 11
BFAM Sortino Ratio Rank: 14
BFAM Omega Ratio Rank: 11
BFAM Calmar Ratio Rank: 19
BFAM Martin Ratio Rank: 16

ABALX

ABALX Risk / Return Rank: 79
ABALX Sharpe Ratio Rank: 80
ABALX Sortino Ratio Rank: 78
ABALX Omega Ratio Rank: 78
ABALX Calmar Ratio Rank: 75
ABALX Martin Ratio Rank: 84

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BFAM vs. ABALX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Bright Horizons Family Solutions Inc. (BFAM) and American Funds American Balanced Fund Class A (ABALX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	BFAM	ABALX	Difference
Sharpe ratio: Return per unit of total volatility	-0.78	2.07	-2.85
Sortino ratio: Return per unit of downside risk	-0.95	2.90	-3.86
Omega ratio: Gain probability vs. loss probability	0.85	1.39	-0.53
Calmar ratio: Return relative to maximum drawdown	-0.67	2.72	-3.39
Martin ratio: Return relative to average drawdown	-1.18	11.97	-13.15

BFAM vs. ABALX - Sharpe Ratio Comparison

The current BFAM Sharpe Ratio is -0.78, which is lower than the ABALX Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of BFAM and ABALX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

BFAM vs. ABALX - Drawdown Comparison

The maximum BFAM drawdown since its inception was -69.32%, which is greater than ABALX's maximum drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for BFAM and ABALX.

Drawdown Indicators

	BFAM	ABALX	Difference
Max Drawdown Largest peak-to-trough decline	-69.32%	-40.20%	-29.12%
Max Drawdown (1Y) Largest decline over 1 year	-52.69%	-7.03%	-45.66%
Max Drawdown (3Y) Largest decline over 3 years	-57.94%	-10.68%	-47.26%
Max Drawdown (5Y) Largest decline over 5 years	-67.15%	-18.76%	-48.39%
Max Drawdown (10Y) Largest decline over 10 years	-69.32%	-22.34%	-46.98%
Current Drawdown Current decline from peak	-58.85%	-0.58%	-58.27%
Average Drawdown Average peak-to-trough decline	-19.93%	-3.84%	-16.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	29.74%	1.60%	+28.14%

Volatility

BFAM vs. ABALX - Volatility Comparison

Bright Horizons Family Solutions Inc. (BFAM) has a higher volatility of 8.75% compared to American Funds American Balanced Fund Class A (ABALX) at 3.15%. This indicates that BFAM's price experiences larger fluctuations and is considered to be riskier than ABALX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BFAM	ABALX	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.75%	3.15%	+5.60%
Volatility (6M) Calculated over the trailing 6-month period	37.14%	7.37%	+29.77%
Volatility (1Y) Calculated over the trailing 1-year period	45.26%	9.23%	+36.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	37.86%	10.58%	+27.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.99%	10.69%	+25.30%

Dividends

BFAM vs. ABALX - Dividend Comparison

BFAM has not paid dividends to shareholders, while ABALX's dividend yield for the trailing twelve months is around 7.12%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ABALX American Funds American Balanced Fund Class A	7.12%	8.27%	6.87%	2.05%	2.30%	4.30%	4.35%	3.49%	5.49%	4.72%	4.24%	5.60%
BFAM Bright Horizons Family Solutions Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BFAM and ABALX in my portfolio?

BFAM and ABALX have a correlation of -0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BFAM or ABALX?

BFAM has higher volatility (8.75%) compared to ABALX (3.15%). In terms of maximum drawdown, BFAM dropped -69.32% vs ABALX's -40.20%.

Which has better risk-adjusted returns?

ABALX currently has the higher Sharpe Ratio (2.07 vs -0.78), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.