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Venus Concept Inc. (NASDAQ:VERO) Outshines Peers in Capital Efficiency
Jun 3, 2025 8:00 PM - Alex Lavoie
Image credit: Google Images
- Venus Concept Inc. (NASDAQ:VERO) showcases efficient capital utilization with a ROIC of 174.86% significantly higher than its WACC of 17.20%.
- NeuroBo Pharmaceuticals and other peers exhibit negative ROIC to WACC ratios, indicating challenges in capital efficiency.
- Plus Therapeutics stands out among peers with a ROIC of 263.26% and a ROIC to WACC ratio of 44.18, highlighting superior capital efficiency.
Venus Concept Inc. (NASDAQ:VERO) is a company that specializes in medical aesthetic technology. It provides a range of non-invasive and minimally invasive devices for various aesthetic and medical applications. The company operates in a competitive market with peers like NeuroBo Pharmaceuticals, ThermoGenesis Holdings, Plus Therapeutics, Exicure, and Acutus Medical.
Venus Concept's ROIC of 174.86% is significantly higher than its WACC of 17.20%, resulting in a ROIC to WACC ratio of 10.16. This indicates that the company is generating returns well above its cost of capital, showcasing efficient capital utilization. This is a positive sign for investors as it suggests that the company is effectively using its resources to generate profits.
In comparison, NeuroBo Pharmaceuticals has a negative ROIC of -574.82% against a WACC of 5.00%, leading to a ROIC to WACC ratio of -114.95. This suggests that NeuroBo is not generating sufficient returns to cover its cost of capital, indicating inefficient capital use. Similarly, ThermoGenesis Holdings and Exicure also show negative ROIC to WACC ratios, reflecting challenges in capital efficiency.
Plus Therapeutics stands out with a ROIC of 263.26% and a WACC of 5.96%, resulting in a ROIC to WACC ratio of 44.18. This indicates that Plus Therapeutics is utilizing its capital more effectively than its peers, generating substantial returns relative to its cost of capital. This positions Plus Therapeutics as a leader in capital efficiency among its peers.
Acutus Medical, with a ROIC of -0.24% and a WACC of 16.09%, has a ROIC to WACC ratio of -0.01, indicating that it is barely covering its cost of capital. This suggests that Acutus Medical may need to improve its capital utilization to enhance its financial performance.
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