By Tredu.com • 2025-08-19 20:00:17
Tredu
Grindr Inc. (NYSE:GRND) is a prominent social networking platform that primarily caters to the LGBTQ+ community. The company offers a mobile application that facilitates connections and interactions among its users. In the competitive landscape, Grindr stands alongside other tech and communication companies, each striving to optimize their financial performance and capital efficiency.
Grindr's Return on Invested Capital (ROIC) is 27.10%, while its Weighted Average Cost of Capital (WACC) is 5.23%. This results in a ROIC to WACC ratio of 5.19, indicating that Grindr is generating returns well above its cost of capital. This suggests that the company is effectively using its capital to create value for its shareholders.
In comparison, Satixfy Communications Ltd. (SATX) has a higher ROIC of 64.82% and a WACC of 11.31%, leading to a ROIC to WACC ratio of 5.73. This shows that Satixfy is also efficiently using its capital, but with a higher cost of capital than Grindr. Despite this, Satixfy's ability to generate returns is slightly better than Grindr's.
On the other hand, Huadi International Group Co., Ltd. (HUDI) and Addentax Group Corp. (ATXG) show negative ROIC to WACC ratios of -0.15 and -0.80, respectively. This indicates that these companies are not generating sufficient returns to cover their cost of capital, highlighting inefficiencies in their capital utilization.
PaxMedica, Inc. (PXMD) stands out with an exceptional ROIC of 511.54% and a WACC of 4.80%, resulting in a ROIC to WACC ratio of 106.48. This indicates that PaxMedica is utilizing its capital extremely efficiently, far surpassing its peers, including Grindr. Despite Grindr's strong performance, PaxMedica's capital efficiency is unmatched in this analysis.