.September 1, 2024 04:00:10 PM

Customers Bancorp, Inc. (NYSE:CUBI) is on a growth trajectory with a ROIC/WACC ratio of 1.10, showing efficient capital utilization. National Bank Holdings Corporation (NYSE:NBHC) leads with a ratio of 1.41, highlighting superior financial management. The banking sector varies in capital efficiency, with CUBI and NBHC standing out for profitability and operational efficiency.

CUBI offers financial services with a stock price of $51.82 and a target price of $86.31. Its WACC is 8.47% and ROIC is 9.28%, resulting in a positive ROIC/WACC ratio of 1.10. ConnectOne Bancorp, Inc. (NASDAQ:CNOB) serves the Northern New Jersey area but has a less efficient ratio of 0.66 compared to CUBI.

Metropolitan Bank Holding Corp. (NYSE:MCB) and Banc of California, Inc. (NYSE:BANC) struggle with generating returns above their capital costs. MCB has a higher WACC at 13.12% and a ratio of 0.58, while BANC has a negative ROIC and a ratio of -0.41. First Foundation Inc. (NASDAQ:FFWM) has a ratio of 1.11, slightly higher than CUBI, while NBHC leads with a ratio of 1.41.

The comparison of ROIC and WACC among CUBI and its peers shows varying capital efficiency. CUBI displays promising growth potential, while NBHC excels in generating returns over its cost of capital. Investors can use these insights to assess banking sector opportunities based on financial metrics.