Tradeweb Markets Inc. struggles with a ROIC of 8.33% which is below its WACC of 9.19%, indicating inefficiencies in capital utilization.
MarketAxess Holdings Inc. showcases strong capital efficiency with a ROIC** of 18.86% against a WACC of 9.35%.
Verisk Analytics, Inc. leads with an exceptional ROIC of 27.82% compared to a WACC of 8.13%, highlighting its superior capital management and profitability.
Tradeweb Markets Inc. is a leading operator of electronic marketplaces for rates, credit, equities, and money markets. The company provides a wide range of financial products and services, facilitating trading for institutional, wholesale, and retail clients. In the competitive landscape, Tradeweb faces peers like MarketAxess Holdings Inc. and Verisk Analytics, Inc., which also operate in the financial services sector.
Tradeweb’s Return on Invested Capital (ROIC) is 8.33%, which is slightly below its Weighted Average Cost of Capital (WACC) of 9.19%. This results in a ROIC to WACC ratio of 0.91, indicating that the company is not generating returns that exceed its cost of capital. This suggests potential inefficiencies in how Tradeweb utilizes its capital, which could impact its profitability and shareholder value.
In contrast, MarketAxess Holdings Inc. demonstrates a robust ROIC of 18.86% against a WACC of 9.35%, resulting in a ROIC to WACC ratio of 2.02. This indicates that MarketAxess is effectively utilizing its capital to generate strong returns, showcasing its profitability and efficient capital management.
Everbridge, Inc. presents a different scenario with a negative ROIC of -9.96% and a WACC of 7.86%, leading to a ROIC to WACC ratio of -1.27. This negative ratio highlights significant challenges for Everbridge in generating profitable returns on its investments, suggesting potential issues in its business model or market strategy.
Verisk Analytics, Inc. stands out with a remarkable ROIC of 27.82% and a WACC of 8.13%, resulting in a ROIC to WACC ratio of 3.42. This high ratio indicates exceptional capital efficiency and profitability, positioning Verisk as a leader among its peers in generating returns relative to its cost of capital.