Insulet Corporation (NASDAQ:PODD) showcases a high Return on Invested Capital (ROIC) of 16.28% and a Weighted Average Cost of Capital (WACC) of 10.30%, indicating efficient capital utilization.
Competitors like DexCom, Tandem Diabetes Care, and Masimo Corporation exhibit lower efficiency in generating returns above their cost of capital compared to Insulet.
ShockWave Medical, Inc. (SWAV) also generates returns above its cost of capital but is not as efficient as Insulet, with a ROIC to WACC ratio of 1.15 versus Insulet’s 1.58.
Insulet Corporation (NASDAQ:PODD) is a medical device company known for its innovative insulin management systems, particularly the Omnipod Insulin Management System. This system offers a tubeless, wearable insulin pump that provides continuous insulin delivery, making it a popular choice for diabetes management. Insulet competes with companies like DexCom, Tandem Diabetes Care, and Masimo Corporation in the diabetes care market.
Insulet’s Return on Invested Capital (ROIC) stands at 16.28%, while its Weighted Average Cost of Capital (WACC) is 10.30%. This results in a ROIC to WACC ratio of 1.58, indicating that Insulet is generating returns significantly above its cost of capital. This efficiency in generating returns suggests that Insulet is effectively utilizing its resources to create value for its shareholders.
In comparison, DexCom, Inc. (DXCM) has a ROIC of 10.20% and a WACC of 9.62%, resulting in a ROIC to WACC ratio of 1.06. While DexCom is generating returns above its cost of capital, it is not as efficient as Insulet. Tandem Diabetes Care, Inc. (TNDM) shows a negative ROIC of -13.29% against a WACC of 9.06%, leading to a ROIC to WACC ratio of -1.47, indicating inefficiency in generating returns.
Penumbra, Inc. (PEN) and Masimo Corporation (MASI) also show lower efficiency compared to Insulet. Penumbra has a ROIC of 4.17% and a WACC of 6.41%, resulting in a ROIC to WACC ratio of 0.65. Masimo’s ROIC is -13.26% with a WACC of 8.69%, leading to a ROIC to WACC ratio of -1.53. Both companies are not generating returns above their cost of capital.
ShockWave Medical, Inc. (SWAV) presents a more favorable comparison with a ROIC of 9.50% and a WACC of 8.26%, resulting in a ROIC to WACC ratio of 1.15. While ShockWave is generating returns above its cost of capital, Insulet’s higher ratio of 1.58 indicates superior efficiency in capital utilization.
