M&T Bank Corporation (NYSE:MTB) is a regional financial services company headquartered in Buffalo, New York. It offers a wide range of banking services, including commercial banking, retail banking, and wealth management. M&T Bank operates primarily in the northeastern United States and has a strong presence in the mid-Atlantic region. Its competitors include Northern Trust Corporation, Comerica Incorporated, The PNC Financial Services Group, Inc., Moody’s Corporation, and KeyCorp.
M&T Bank Corporation’s Return on Invested Capital (ROIC) is an impressive 132.61%, significantly higher than its Weighted Average Cost of Capital (WACC) of 11.81%. This results in a ROIC to WACC ratio of 11.23, indicating that the bank is generating substantial returns on its investments relative to its cost of capital. This strong performance suggests that M&T Bank is effectively utilizing its capital to create value for its shareholders.
In comparison, Northern Trust Corporation has a ROIC of 28.52% and a WACC of 22.39%, resulting in a ROIC to WACC ratio of 1.27. While Northern Trust is generating returns above its cost of capital, its performance is not as strong as M&T Bank’s. Similarly, Moody’s Corporation shows a positive ROIC to WACC ratio of 1.81, with a ROIC of 18.31% and a WACC of 10.11%, indicating efficient capital utilization.
On the other hand, Comerica Incorporated and The PNC Financial Services Group, Inc. have lower ROIC to WACC ratios of 0.04 and 0.08, respectively. Comerica’s ROIC is 0.53% against a WACC of 14.17%, while PNC’s ROIC is 1.08% with a WACC of 13.12%. These figures suggest that both companies are struggling to generate returns that exceed their cost of capital.
KeyCorp presents a concerning picture with a negative ROIC of -164.94% and a WACC of 16.77%, resulting in a ROIC to WACC ratio of -9.83. This indicates that KeyCorp is not covering its cost of capital, which could be a red flag for investors. Overall, M&T Bank Corporation leads its peers in terms of ROIC to WACC ratio, highlighting its strong financial performance and efficient capital management.
