Marchex, Inc. (NASDAQ:MCHX) is a company that specializes in call analytics and call tracking solutions, helping businesses connect, drive, and convert more customers. Despite its innovative offerings, Marchex faces challenges in efficiently utilizing its capital. The company's Return on Invested Capital (ROIC) is -16.21%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 12.68%. This results in a negative ROIC to WACC ratio of -1.28, indicating that Marchex is not generating enough returns to cover its cost of capital.
In comparison, QuinStreet, Inc. (QNST) shows a more favorable financial position with a ROIC of 4.20% and a WACC of 7.22%. This results in a ROIC to WACC ratio of 0.58, suggesting that QuinStreet is more efficient in generating returns relative to its cost of capital than Marchex. Similarly, comScore, Inc. (SCOR) has a ROIC of 1.10% and a WACC of 5.42%, leading to a ROIC to WACC ratio of 0.20, which, while lower than QuinStreet, still indicates better capital utilization than Marchex.
Maiden Holdings, Ltd. (MHLD) also struggles with capital efficiency, having a ROIC of -15.37% against a WACC of 8.21%. This results in a ROIC to WACC ratio of -1.87, which is even less favorable than Marchex's ratio. On the other hand, Macatawa Bank Corporation (MCBC) has a ROIC of 2.94% and a WACC of 5.94%, resulting in a ROIC to WACC ratio of 0.50, showing better capital efficiency compared to Marchex.
Liquidity Services, Inc. (LQDT) emerges as the leader among the peers with a ROIC of 11.42% and a WACC of 9.01%. This results in a ROIC to WACC ratio of 1.27, indicating that Liquidity Services is the most efficient in generating returns relative to its cost of capital. This stark contrast highlights the challenges Marchex faces in capital utilization compared to its peers.
