Capital Southwest (CSWC) Competitors

Golub Capital BDC (NASDAQ:GBDC) and Capital Southwest (NASDAQ:CSWC) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, community ranking, institutional ownership, analyst recommendations, earnings, profitability, media sentiment and dividends.

Does the MarketBeat Community favor GBDC or CSWC?

Golub Capital BDC received 64 more outperform votes than Capital Southwest when rated by MarketBeat users. However, 60.40% of users gave Capital Southwest an outperform vote while only 55.15% of users gave Golub Capital BDC an outperform vote.

Company	Underperform	Outperform
Golub Capital BDC	Outperform Votes 305 55.15%	Underperform Votes 248 44.85%
Capital Southwest	Outperform Votes 241 60.40%	Underperform Votes 158 39.60%

Do insiders & institutionals have more ownership in GBDC or CSWC?

42.4% of Golub Capital BDC shares are held by institutional investors. Comparatively, 23.4% of Capital Southwest shares are held by institutional investors. 3.6% of Golub Capital BDC shares are held by insiders. Comparatively, 2.8% of Capital Southwest shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Is GBDC or CSWC more profitable?

Golub Capital BDC has a net margin of 39.63% compared to Capital Southwest's net margin of 33.49%. Capital Southwest's return on equity of 15.18% beat Golub Capital BDC's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Golub Capital BDC	39.63%	11.18%	5.11%
Capital Southwest	33.49%	15.18%	7.37%

Is GBDC or CSWC a better dividend stock?

Golub Capital BDC pays an annual dividend of $1.56 per share and has a dividend yield of 10.2%. Capital Southwest pays an annual dividend of $2.32 per share and has a dividend yield of 10.9%. Golub Capital BDC pays out 138.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Capital Southwest pays out 156.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Capital Southwest has raised its dividend for 2 consecutive years. Capital Southwest is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do analysts prefer GBDC or CSWC?

Golub Capital BDC presently has a consensus target price of $15.50, indicating a potential upside of 1.84%. Capital Southwest has a consensus target price of $22.67, indicating a potential upside of 6.82%. Given Capital Southwest's higher possible upside, analysts plainly believe Capital Southwest is more favorable than Golub Capital BDC.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golub Capital BDC	0 Sell rating(s)	1 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.75
Capital Southwest	0 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.33

Does the media refer more to GBDC or CSWC?

In the previous week, Capital Southwest had 4 more articles in the media than Golub Capital BDC. MarketBeat recorded 7 mentions for Capital Southwest and 3 mentions for Golub Capital BDC. Golub Capital BDC's average media sentiment score of 1.87 beat Capital Southwest's score of 1.04 indicating that Golub Capital BDC is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Golub Capital BDC	2 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Capital Southwest	2 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility and risk, GBDC or CSWC?

Golub Capital BDC has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Capital Southwest has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Which has higher valuation and earnings, GBDC or CSWC?

Golub Capital BDC has higher revenue and earnings than Capital Southwest. Golub Capital BDC is trading at a lower price-to-earnings ratio than Capital Southwest, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golub Capital BDC	$300.65M	13.49	$273.79M	$1.13	13.47
Capital Southwest	$108.85M	10.47	$83.39M	$1.48	14.34

Summary

Golub Capital BDC beats Capital Southwest on 11 of the 21 factors compared between the two stocks.