• OptimumBank Holdings, Inc. (NASDAQ:OPHC) has a ROIC to WACC ratio of 0.51, indicating inefficient capital utilization compared to its peers.
• Old Point Financial Corporation and Peoples Bancorp of North Carolina, Inc. show more favorable capital utilization with ROIC to WACC ratios close to or above 1.
• Patriot National Bancorp, Inc. stands out with a ROIC of 25.52% and a WACC of 12.45%, showcasing significant returns above its cost of capital.

OptimumBank Holdings, Inc. (NASDAQ:OPHC) is a financial institution that provides a range of banking services. The company operates in a competitive landscape alongside peers such as Old Point Financial Corporation, Patriot National Bancorp, Inc., Village Bank and Trust Financial Corp., Carver Bancorp, Inc., and Peoples Bancorp of North Carolina, Inc. A key metric for evaluating these companies is the comparison between Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC).

OptimumBank's ROIC stands at 6.49%, while its WACC is 12.76%. This results in a ROIC to WACC ratio of 0.51, indicating that the company is not generating returns that exceed its cost of capital. This suggests that OptimumBank may not be using its capital as effectively as it could be, which is a concern for investors looking for efficient capital allocation.

In contrast, Old Point Financial Corporation has a ROIC of 10.20% and a WACC of 10.35%, resulting in a ROIC to WACC ratio of 0.99. This near parity suggests that Old Point is almost breaking even in terms of returns versus cost of capital, which is more favorable than OptimumBank's position.

Patriot National Bancorp, Inc. and Peoples Bancorp of North Carolina, Inc. both exhibit strong performance with ROIC to WACC ratios of 2.05. Patriot National's ROIC is 25.52% against a WACC of 12.45%, while Peoples Bancorp's ROIC is 26.81% against a WACC of 13.11%. These figures indicate that both companies are generating returns significantly above their cost of capital, making them attractive options for investors.

Village Bank and Trust Financial Corp. and Carver Bancorp, Inc. also show varied performance. Village Bank's ROIC of 12.56% and WACC of 8.75% result in a ROIC to WACC ratio of 1.43, indicating efficient capital use. Meanwhile, Carver Bancorp's ROIC of 8.46% and WACC of 17.80% yield a ratio of 0.48, similar to OptimumBank, suggesting less effective capital utilization.