Capital Southwest Corporation (CSWC) vs Goldman Sachs BDC, Inc. (GSBD)

Capital Southwest Corporation and Goldman Sachs BDC, Inc. are both Asset Management companies. Capital Southwest Corporation is the larger, with a market value of $1.5B against $1.1B — 1.4× the size. Capital Southwest Corporation trades at the lower P/E: 12.2× against 18.3×. Capital Southwest Corporation grew revenue faster over the last twelve months: 13.5% against −15.4%. Capital Southwest Corporation has the higher net margin (46.2% vs 17.2%) and the higher return on invested capital (5.38% vs 3.09%). Both pay a dividend; Goldman Sachs BDC, Inc. yields more (12.1% vs 10.3%). Across the 21 metrics below, Capital Southwest Corporation leads on 14 and Goldman Sachs BDC, Inc. on 7.

Valuation

Metric CSWC GSBD Asset Management median
P/E 12.23 18.35 14.62
P/S 5.96 3.16 2.97
P/B 1.34 0.79 0.94
Price to free cash flow n/m 13.19 8.93
EV/EBITDA 9.73 10.33 10.32
EV/Sales 8.46 8.56 5.72
Earnings yield 8.17% 5.45% 4.53%
Free cash flow yield (21.59%) 7.58% 4.65%

Profitability

Metric CSWC GSBD Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 87.98% 80.87% 33.03%
Net margin 46.17% 17.19% 13.53%
Free cash flow margin (128.52%) 23.94% 12.44%
Return on equity 11.09% 4.07% 4.83%
Return on assets 5.22% 1.75% 1.57%
Return on invested capital 5.38% 3.09% 3.04%

Growth

Metric CSWC GSBD Asset Management median
Revenue growth (TTM) 13.48% (15.41%) 6.97%
EPS growth (last fiscal year) 29.25% 87.27% —
Revenue growth, 5-year CAGR 27.81% 16.15% 12.13%
Net income growth, 5-year CAGR 17.05% (7.50%) 0.00%

Health

Metric CSWC GSBD Asset Management median
Debt to equity 0.62 1.36 0.42
Current ratio 0.17 0.69 1.28
Net debt to EBITDA 2.66 6.17 1.06

Dividend

Metric CSWC GSBD Asset Management median
Dividend yield 10.32% 12.11% 6.92%
Payout ratio 1.37 2.14 0.77

Size

Metric CSWC GSBD Asset Management median
Market cap 1.47b 1.07b 721.34m

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