Alphatec Holdings, Inc. (NASDAQ:ATEC) is a medical technology company that focuses on the design, development, and advancement of products for the surgical treatment of spinal disorders. The company aims to improve patient outcomes through innovative solutions. In the competitive landscape, Alphatec faces peers like AtriCure, Inc., Orthofix Medical Inc., AngioDynamics, Inc., and Addus HomeCare Corporation.
In evaluating Alphatec's financial performance, the Return on Invested Capital (ROIC) is a critical metric. Alphatec's ROIC stands at -19.95%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 8.66%. This negative ROIC indicates that Alphatec is not generating enough returns to cover its cost of capital, leading to a ROIC to WACC ratio of -2.31.
Comparing Alphatec to its peers, AtriCure, Inc. has a ROIC of -7.60% and a WACC of 11.22%, resulting in a ROIC to WACC ratio of -0.68. Orthofix Medical Inc. shows a ROIC of -10.55% against a WACC of 10.00%, with a ratio of -1.05. AngioDynamics, Inc. has a ROIC of -15.03% and a WACC of 6.71%, leading to a ratio of -2.24. These figures highlight that Alphatec and its peers are struggling to generate returns that exceed their cost of capital.
In contrast, Addus HomeCare Corporation stands out with a positive ROIC of 5.99% and a WACC of 9.01%, resulting in a ROIC to WACC ratio of 0.66. This positive ratio indicates that Addus HomeCare is effectively utilizing its capital to generate returns that surpass its cost of capital, showcasing efficient capital management compared to Alphatec and its other peers.
