BFAM vs. APP

Last updated Jun 3, 2026

BFAM (Bright Horizons Family Solutions Inc.) and APP (AppLovin Corporation) are both stocks. BFAM operates in Personal Services (Consumer Cyclical), while APP operates in Software - Application (Technology). Over the past 5 years, BFAM returned -15.32%/yr vs 53.76%/yr for APP. At a 0.29 correlation, their price movements are largely independent.

Performance

BFAM vs. APP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Bright Horizons Family Solutions Inc. (BFAM) and AppLovin Corporation (APP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BFAM achieves a -39.81% return, which is significantly lower than APP's -10.12% return.

BFAM

• 1D: -6.84%
• 1M: -25.16%
• YTD: -39.81%
• 6M: -41.34%
• 1Y: -52.38%
• 3Y*: -11.39%
• 5Y*: -15.32%
• 10Y*: -0.69%

APP

• 1D: -1.31%
• 1M: 31.66%
• YTD: -10.12%
• 6M: -7.25%
• 1Y: 50.69%
• 3Y*: 190.09%
• 5Y*: 53.76%
• 10Y*: —

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

BFAM vs. APP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
BFAM Bright Horizons Family Solutions Inc.	-39.81%	-8.53%	17.63%	49.35%	-49.87%	-24.29%
APP AppLovin Corporation	-10.12%	108.08%	712.62%	278.44%	-88.83%	44.57%

Correlation

The correlation between BFAM and APP is 0.04, 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	0.04
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (5Y) Calculated over the trailing 5-year period	0.28
Correlation (All Time) Calculated using the full available price history since Apr 16, 2021	0.29

Over the past year, the correlation between BFAM and APP has dropped to 0.04 - well below their long-term average of 0.29, suggesting their price drivers have been diverging.

Fundamentals

Market Cap BFAM : $3.34B APP : $205.14B
EPS BFAM : $4.00 APP : $11.64
PE Ratio BFAM : 15.26 APP : 52.03
PEG Ratio BFAM : 0.43 APP : 0.16
PS Ratio BFAM : 1.16 APP : 33.45
PB Ratio BFAM : 2.91 APP : 86.80
Total Revenue (TTM) BFAM : $2.98B APP : $6.16B
Gross Profit (TTM) BFAM : $702.07M APP : $5.45B
EBITDA (TTM) BFAM : $388.87M APP : $4.87B

Return for Risk

BFAM vs. APP — Risk / Return Rank

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

BFAM

BFAM Risk / Return Rank: 1
BFAM Sharpe Ratio Rank: 2
BFAM Sortino Ratio Rank: 3
BFAM Omega Ratio Rank: 2
BFAM Calmar Ratio Rank: 0
BFAM Martin Ratio Rank: 1

APP

APP Risk / Return Rank: 62
APP Sharpe Ratio Rank: 64
APP Sortino Ratio Rank: 61
APP Omega Ratio Rank: 61
APP Calmar Ratio Rank: 62
APP Martin Ratio Rank: 61

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. APP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Bright Horizons Family Solutions Inc. (BFAM) and AppLovin Corporation (APP). 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.

	BFAM	APP	Difference
Sharpe ratio Return per unit of total volatility	-1.21	0.72	-1.93
Sortino ratio Return per unit of downside risk	-1.88	1.31	-3.19
Omega ratio Gain probability vs. loss probability	0.72	1.18	-0.46
Calmar ratio Return relative to maximum drawdown	-1.01	1.08	-2.09
Martin ratio Return relative to average drawdown	-1.94	2.15	-4.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BFAM vs. APP - Sharpe Ratio Comparison

The current BFAM Sharpe Ratio is -1.21, which is lower than the APP Sharpe Ratio of 0.72. The chart below compares the historical Sharpe Ratios of BFAM and APP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BFAM	APP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.21	0.72	-1.93
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.41	0.70	-1.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.02	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.18	0.71	-0.53

Drawdowns

BFAM vs. APP - Drawdown Comparison

The maximum BFAM drawdown since its inception was -69.32%, smaller than the maximum APP drawdown of -91.90%. Use the drawdown chart below to compare losses from any high point for BFAM and APP.

Drawdown Indicators

	BFAM	APP	Difference
Max Drawdown Largest peak-to-trough decline	-69.32%	-91.90%	+22.58%
Max Drawdown (1Y) Largest decline over 1 year	-52.35%	-49.99%	-2.36%
Max Drawdown (3Y) Largest decline over 3 years	-56.63%	-57.00%	+0.37%
Max Drawdown (5Y) Largest decline over 5 years	-67.15%	-91.90%	+24.75%
Max Drawdown (10Y) Largest decline over 10 years	-69.32%	—	—
Current Drawdown Current decline from peak	-66.41%	-17.44%	-48.97%
Average Drawdown Average peak-to-trough decline	-19.59%	-42.52%	+22.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	27.17%	25.13%	+2.04%

Volatility

BFAM vs. APP - Volatility Comparison

Bright Horizons Family Solutions Inc. (BFAM) has a higher volatility of 23.55% compared to AppLovin Corporation (APP) at 19.94%. This indicates that BFAM's price experiences larger fluctuations and is considered to be riskier than APP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BFAM	APP	Difference
Volatility (1M) Calculated over the trailing 1-month period	23.55%	19.94%	+3.61%
Volatility (6M) Calculated over the trailing 6-month period	35.66%	58.33%	-22.67%
Volatility (1Y) Calculated over the trailing 1-year period	43.57%	70.60%	-27.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	37.58%	77.73%	-40.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.81%	77.53%	-41.72%

Dividends

BFAM vs. APP - Dividend Comparison

Neither BFAM nor APP has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

BFAM vs. APP - Profitability Comparison

The chart below illustrates the profitability comparison between Bright Horizons Family Solutions Inc. and AppLovin Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

BFAM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Bright Horizons Family Solutions Inc. reported a gross profit of 163.49M and revenue of 712.22M. Therefore, the gross margin over that period was 23.0%.

APP - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, AppLovin Corporation reported a gross profit of 1.64B and revenue of 1.84B. Therefore, the gross margin over that period was 89.0%.

BFAM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Bright Horizons Family Solutions Inc. reported an operating income of 64.95M and revenue of 712.22M, resulting in an operating margin of 9.1%.

APP - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, AppLovin Corporation reported an operating income of 1.44B and revenue of 1.84B, resulting in an operating margin of 78.2%.

BFAM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Bright Horizons Family Solutions Inc. reported a net income of 71.75M and revenue of 712.22M, resulting in a net margin of 10.1%.

APP - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, AppLovin Corporation reported a net income of 1.21B and revenue of 1.84B, resulting in a net margin of 65.4%.

Frequently Asked Questions

Can I hold both BFAM and APP in my portfolio?

BFAM and APP have a correlation of 0.04, 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 APP?

BFAM has higher volatility (23.55%) compared to APP (19.94%). In terms of maximum drawdown, BFAM dropped -69.32% vs APP's -91.90%.

Which has better risk-adjusted returns?

APP currently has the higher Sharpe Ratio (0.72 vs -1.21), 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.