Ondas Holdings Inc. (NASDAQ:ONDS) Financial Analysis

• Ondas Holdings Inc. has a Weighted Average Cost of Capital (WACC) of 11.85% and a Return on Invested Capital (ROIC) of -22.60%, indicating inefficient use of capital.
• LifeMD, Inc. showcases a positive ROIC to WACC ratio of 2.46, suggesting effective capital utilization.
• Other peers like CuriosityStream Inc., Kubient, Inc., and ClearPoint Neuro, Inc. have negative ROIC to WACC ratios, highlighting challenges in generating sufficient returns to cover their cost of capital.

Ondas Holdings Inc. (NASDAQ:ONDS) is a technology company that focuses on providing wireless data solutions for mission-critical services. The company operates in a competitive landscape with peers like CuriosityStream Inc., LifeMD, Inc., Kubient, Inc., ClearPoint Neuro, Inc., and Porch Group, Inc. These companies vary in their focus areas, from streaming services to healthcare and digital advertising.

Ondas Holdings Inc. has a Weighted Average Cost of Capital (WACC) of 11.85% and a Return on Invested Capital (ROIC) of -22.60%. This results in a ROIC to WACC ratio of -1.91, indicating that the company is not generating enough returns to cover its cost of capital. This is a red flag for investors as it suggests inefficient use of capital.

In comparison, CuriosityStream Inc. has a WACC of 12.05% and a ROIC of -8.63%, resulting in a ROIC to WACC ratio of -0.72. While also negative, CuriosityStream's ratio is less severe than Ondas, indicating slightly better capital efficiency. However, it still falls short of covering its cost of capital.

LifeMD, Inc. stands out with a WACC of 10.79% and a ROIC of 26.57%, leading to a ROIC to WACC ratio of 2.46. This positive ratio suggests that LifeMD is effectively using its capital to generate returns well above its cost, making it an attractive option for investors seeking efficient capital utilization.

Kubient, Inc. and ClearPoint Neuro, Inc. both have negative ROIC to WACC ratios of -7.83 and -5.21, respectively. These figures indicate significant challenges in generating returns that meet or exceed their cost of capital. Porch Group, Inc., with a ROIC to WACC ratio of 0.34, shows a modest positive return, suggesting some level of capital efficiency, though not as strong as LifeMD.