Acacia Research Corporation (NASDAQ:ACTG) is a company that specializes in acquiring and managing patent portfolios. It operates in the intellectual property sector, focusing on patent licensing and enforcement. The company competes with other firms in the technology and intellectual property space, such as ACI Worldwide, Inc. (ACIW), AAON, Inc. (AAON), Ameris Bancorp (ABCB), and Agilysys, Inc. (AGYS).
In evaluating Acacia Research Corporation's financial performance, the Return on Invested Capital (ROIC) is a crucial metric. ACTG's ROIC is 0.28%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 5.70%. This indicates that the company is not generating returns that exceed its cost of capital, which can be a concern for investors.
Comparatively, ACI Worldwide, Inc. (ACIW) demonstrates a strong financial position with a ROIC of 11.38% and a WACC of 8.33%. This results in a ROIC to WACC ratio of 1.367, suggesting that ACIW is effectively generating returns above its cost of capital. This efficiency in capital utilization positions ACIW favorably for potential growth.
AAON, Inc. (AAON) also shows a positive ROIC to WACC ratio of 1.017, with a ROIC of 8.66% and a WACC of 8.52%. This indicates that AAON is generating returns that slightly exceed its cost of capital, reflecting a balanced financial performance.
In contrast, Ameris Bancorp (ABCB) and Agilysys, Inc. (AGYS) present varied financial outcomes. ABCB has a ROIC of 2.81% against a high WACC of 15.10%, resulting in a low ROIC to WACC ratio of 0.186. Meanwhile, AGYS achieves a ROIC of 6.79% with a WACC of 5.59%, leading to a favorable ROIC to WACC ratio of 1.214, indicating efficient capital use.
