Capital Southwest (CSWC) Competitors

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

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%

Does the MarketBeat Community believe in 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%

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 10.5%. Capital Southwest pays an annual dividend of $2.32 per share and has a dividend yield of 11.3%. 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 increased 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.

Does the media refer more to GBDC or CSWC?

In the previous week, Golub Capital BDC had 2 more articles in the media than Capital Southwest. MarketBeat recorded 8 mentions for Golub Capital BDC and 6 mentions for Capital Southwest. Golub Capital BDC's average media sentiment score of 1.52 beat Capital Southwest's score of 0.53 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	7 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Capital Southwest	2 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals hold more shares of GBDC or CSWC?

42.4% of Golub Capital BDC shares are owned by institutional investors. Comparatively, 23.4% of Capital Southwest shares are owned by institutional investors. 3.6% of Golub Capital BDC shares are owned by insiders. Comparatively, 4.2% of Capital Southwest shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Which has better earnings & valuation, 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	13.19	$273.79M	$1.13	13.18
Capital Southwest	$108.85M	9.57	$83.39M	$1.48	13.91

Which has more risk & volatility, GBDC or CSWC?

Golub Capital BDC has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Capital Southwest has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Do analysts rate GBDC or CSWC?

Golub Capital BDC currently has a consensus target price of $15.50, indicating a potential upside of 4.10%. Capital Southwest has a consensus target price of $22.67, indicating a potential upside of 10.09%. 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

Summary

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