Lantheus Holdings, Inc. (NASDAQ:LNTH) showcases a significant Return on Invested Capital (ROIC) of 18.77%, outperforming its competitors in the healthcare sector.
The company’s ROIC to WACC ratio of 3.07 indicates efficient generation of returns over its cost of capital, highlighting effective management and financial health.
While Medpace Holdings exhibits a higher efficiency with a ROIC to WACC ratio of 3.48, Lantheus remains competitive with its strong performance and capital utilization.
Lantheus Holdings, Inc. (NASDAQ:LNTH) is a company that specializes in the development and commercialization of innovative diagnostic and therapeutic products. It operates in the healthcare sector, focusing on medical imaging and radiopharmaceuticals. Lantheus competes with other companies in the medical technology and pharmaceutical industries, such as ShockWave Medical, Inc. (SWAV), Medpace Holdings, Inc. (MEDP), LivaNova PLC (LIVN), Apellis Pharmaceuticals, Inc. (APLS), and Natera, Inc. (NTRA).
Lantheus Holdings demonstrates a strong Return on Invested Capital (ROIC) of 18.77%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 6.11%. This results in a ROIC to WACC ratio of 3.07, indicating that the company efficiently generates returns over its cost of capital. This efficiency is crucial for sustaining growth and profitability in the competitive healthcare market.
In comparison, ShockWave Medical has a ROIC of 9.50% and a WACC of 8.26%, resulting in a ROIC to WACC ratio of 1.15. This suggests that while ShockWave is generating returns above its cost of capital, it is not as efficient as Lantheus. Medpace Holdings, however, outperforms Lantheus with a ROIC of 38.11% and a WACC of 10.94%, leading to a ROIC to WACC ratio of 3.48. This makes Medpace the most efficient among the peers in generating returns over its cost of capital.
LivaNova PLC, with a ROIC of 5.16% and a WACC of 8.75%, has a ROIC to WACC ratio of 0.59, indicating inefficiency in generating returns over its cost of capital. Similarly, Apellis Pharmaceuticals and Natera, Inc. show negative ROICs of -23.50% and -15.85%, respectively, with ROIC to WACC ratios of -2.78 and -1.27. These figures highlight challenges in generating sufficient returns to cover their cost of capital.
Overall, Lantheus Holdings stands out with its strong capital utilization, as evidenced by its ROIC to WACC ratio. While Medpace Holdings surpasses Lantheus in efficiency, Lantheus remains a strong performer in its industry, demonstrating effective management of its invested capital to generate returns.
