Heritage Commerce Corp (NASDAQ:HTBK) is a prominent player in the financial services sector, focusing on banking services for small to medium-sized businesses and individuals. It faces competition from various regional banks, including Heritage Financial Corporation, Horizon Bancorp, Heartland Financial USA, Sierra Bancorp, and Lakeland Bancorp.

In assessing the financial health and efficiency of Heritage Commerce Corp, two critical metrics stand out: the Return on Invested Capital (ROIC) and the Weighted Average Cost of Capital (WACC). HTBK's ROIC stands at 5.05% with a WACC of 16.33%, leading to a ROIC to WACC ratio of 0.309. This ratio is a vital indicator of how well the company is generating returns on its invested capital relative to its cost of capital.

When compared to its competitors, Heritage Commerce Corp's performance varies. Heritage Financial Corporation (HFWA) has a slightly more efficient use of capital with a ROIC to WACC ratio of 0.353. On the other hand, Horizon Bancorp (HBNC) shows less efficiency with a ratio of 0.248. Sierra Bancorp (BSRR) emerges as the most efficient among the peers with a ratio of 0.518, indicating superior capital utilization. Conversely, Lakeland Bancorp (LBAI) demonstrates inefficiency in its capital utilization with a negative ROIC to WACC ratio of -0.078.

This analysis highlights the importance of evaluating financial metrics such as ROIC and WACC in understanding a company's financial performance and operational efficiency. Heritage Commerce Corp, while competitive, shows room for improvement in optimizing its capital utilization to enhance shareholder value.