• The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) has a Return on Invested Capital (ROIC) of 1.90%, significantly lower than its Weighted Average Cost of Capital (WACC) of 7.46%.
• PJT Partners Inc. showcases a strong ROIC of 16.27% against a WACC of 7.23%, indicating efficient capital use and strong value creation.
• Several competitors, including FB Financial Corporation and Northrim BanCorp, Inc., demonstrate inefficiencies in generating returns, with ROICs far below their respective WACCs.

The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) is a financial institution that provides a range of banking services, including personal and business banking, wealth management, and trust services. The company operates primarily in Bermuda, the Cayman Islands, and the Channel Islands. In the competitive banking sector, NTB faces competition from other financial institutions like PJT Partners Inc., National Bank Holdings Corporation, FB Financial Corporation, Northrim BanCorp, Inc., and Employers Holdings, Inc.

NTB's Return on Invested Capital (ROIC) is 1.90%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 7.46%. This results in a ROIC/WACC ratio of 0.25, indicating that NTB is not generating returns that exceed its cost of capital. This suggests potential inefficiencies in capital allocation or challenges in generating sufficient returns from its investments.

In comparison, PJT Partners Inc. demonstrates a strong ROIC of 16.27% against a WACC of 7.23%, resulting in a ROIC/WACC ratio of 2.25. This indicates efficient capital use and strong value creation, making PJT the most efficient among its peers in generating returns relative to its cost of capital.

National Bank Holdings Corporation has a ROIC of 16.84% and a WACC of 17.39%, leading to a ROIC/WACC ratio of 0.97. This suggests that NBHC is close to covering its cost of capital but not significantly exceeding it. Meanwhile, FB Financial Corporation's ROIC of 0.60% is far below its WACC of 19.90%, resulting in a ROIC/WACC ratio of 0.03, indicating inefficiencies in generating returns.

Northrim BanCorp, Inc. has a ROIC of 5.44% and a WACC of 14.57%, with a ROIC/WACC ratio of 0.37, suggesting that the company is not generating sufficient returns to cover its cost of capital.