Efficiency Analysis of Wag! Group Co. and Peers in the Pet Services Market

• Wag! Group Co. (NASDAQ:PET) has a ROIC of -77.36% and a WACC of 24.86%, indicating it is not generating returns above its cost of capital.
• Nogin, Inc. (NOGN) shows the lowest efficiency with a ROIC to WACC ratio of -39.52, highlighting significant challenges in generating returns.
• Akili, Inc. (AKLI) has the highest ROIC to WACC ratio of -2.72 among the peers, suggesting it is the closest to breaking even.

Wag! Group Co. (NASDAQ:PET) is a company that provides pet services, including dog walking and pet sitting, through its online platform. The company operates in a competitive market with other pet service providers. In evaluating Wag! Group Co. and its peers, the focus is on the Return on Invested Capital (ROIC) compared to the Weighted Average Cost of Capital (WACC) to determine how efficiently these companies generate returns relative to their cost of capital.

Wag! Group Co. has a ROIC of -77.36% and a WACC of 24.86%, resulting in a ROIC to WACC ratio of -3.11. This indicates that the company is not generating returns above its cost of capital. Despite this, Wag! Group Co. performs better than Nogin, Inc. and Nauticus Robotics, Inc. in terms of efficiency relative to their cost of capital.

Nogin, Inc. (NOGN) has a ROIC of -154.44% and a WACC of 3.91%, leading to a ROIC to WACC ratio of -39.52. This is the lowest among the peers, showing significant challenges in generating returns. In contrast, Akili, Inc. (AKLI) has the highest ROIC to WACC ratio of -2.72, with a ROIC of -36.10% and a WACC of 13.27%, indicating it is the closest to breaking even.

Semantix, Inc. (STIX) and Nauticus Robotics, Inc. (KITT) also face challenges, with ROIC to WACC ratios of -3.48 and -3.38, respectively. Semantix has a ROIC of -61.78% and a WACC of 17.76%, while Nauticus Robotics has a ROIC of -53.16% and a WACC of 15.74%. These figures highlight the difficulties these companies face in generating returns above their cost of capital.