Sportradar Group AG (NASDAQ:SRAD) is a leading global provider of sports data and content. The company offers a range of services, including data analytics, sports entertainment, and betting services. It competes with companies like Genius Sports Limited and Thoughtworks Holding, Inc., which also operate in the sports data and technology sectors.
Sportradar’s Return on Invested Capital (ROIC) is 6.67%, while its Weighted Average Cost of Capital (WACC) is 14.65%. This indicates that the company is not generating returns that exceed its cost of capital. A ROIC lower than WACC suggests that the company is not using its capital efficiently to generate profits.
In comparison, Genius Sports Limited has a ROIC of -7.39% and a WACC of 13.34%, resulting in a ROIC to WACC ratio of -0.554. This negative ratio indicates that Genius Sports is also struggling to generate returns above its cost of capital, similar to Sportradar.
Thoughtworks Holding, Inc. shows a ROIC of -6.47% and a WACC of 9.10%, with a ROIC to WACC ratio of -0.711. This further highlights inefficiencies in capital usage, as the company is not generating sufficient returns to cover its cost of capital.
Among the peers, Mister Car Wash, Inc. stands out with a ROIC of 4.63% and a WACC of 7.76%, resulting in the highest ROIC to WACC ratio of 0.597. This indicates that Mister Car Wash is the most efficient in generating returns relative to its cost of capital, suggesting better capital management compared to Sportradar and its other peers.
