Capital Southwest (CSWC) Competitors

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

Which has more risk and volatility, GBDC or CSWC?

Golub Capital BDC has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Capital Southwest has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Is GBDC or CSWC more profitable?

Golub Capital BDC has a net margin of 37.78% compared to Capital Southwest's net margin of 37.77%. Capital Southwest's return on equity of 15.54% beat Golub Capital BDC's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Golub Capital BDC	37.78%	12.77%	5.85%
Capital Southwest	37.77%	15.54%	7.71%

Does the media favor GBDC or CSWC?

In the previous week, Golub Capital BDC had 14 more articles in the media than Capital Southwest. MarketBeat recorded 14 mentions for Golub Capital BDC and 0 mentions for Capital Southwest. Golub Capital BDC's average media sentiment score of 0.47 beat Capital Southwest's score of 0.00 indicating that Golub Capital BDC is being referred to more favorably in the media.

Company	Overall Sentiment
Golub Capital BDC	Neutral
Capital Southwest	Neutral

Do institutionals & insiders believe 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. 2.7% of Golub Capital BDC shares are held by insiders. Comparatively, 4.2% of Capital Southwest shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Which has preferable 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	$724.68M	3.60	$258.63M	$1.41	10.79
Capital Southwest	$178.13M	6.16	$83.39M	$1.64	14.02

Do analysts recommend GBDC or CSWC?

Golub Capital BDC presently has a consensus price target of $16.50, suggesting a potential upside of 8.41%. Capital Southwest has a consensus price target of $25.67, suggesting a potential upside of 11.64%. Given Capital Southwest's higher possible upside, analysts clearly 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)	2 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.60
Capital Southwest	0 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.33

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 10.1%. Golub Capital BDC pays out 110.6% 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 141.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Golub Capital BDC is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the MarketBeat Community believe in GBDC or CSWC?

Golub Capital BDC received 63 more outperform votes than Capital Southwest when rated by MarketBeat users. However, 61.70% of users gave Capital Southwest an outperform vote while only 55.80% of users gave Golub Capital BDC an outperform vote.

Company	Underperform	Outperform
Golub Capital BDC	Outperform Votes 303 55.80%	Underperform Votes 240 44.20%
Capital Southwest	Outperform Votes 240 61.70%	Underperform Votes 149 38.30%

Summary

Golub Capital BDC beats Capital Southwest on 11 of the 20 factors compared between the two stocks.