Capital Southwest Corporation (CSWC) vs Morgan Stanley Direct Lending Fund (MSDL)

Capital Southwest Corporation and Morgan Stanley Direct Lending Fund are both Asset Management companies. Capital Southwest Corporation is the larger, with a market value of $1.5B against $1.2B — 1.2× the size. Capital Southwest Corporation trades at the lower P/E: 12.2× against 20.7×. Capital Southwest Corporation grew revenue faster over the last twelve months: 13.5% against −9.57%. Capital Southwest Corporation has the higher net margin (46.2% vs 16.0%) and the higher return on invested capital (5.38% vs 2.95%). Across the 20 metrics below, Capital Southwest Corporation leads on 11 and Morgan Stanley Direct Lending Fund on 9.

Valuation

Metric CSWC MSDL Asset Management median
P/E 12.23 20.71 14.62
P/S 5.96 3.24 2.97
P/B 1.34 0.74 0.94
Price to free cash flow n/m 4.28 8.93
EV/EBITDA 9.73 8.14 10.32
EV/Sales 8.46 8.36 5.72
Earnings yield 8.17% 4.83% 4.53%
Free cash flow yield (21.59%) 23.36% 4.65%

Profitability

Metric CSWC MSDL Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 87.98% 79.74% 33.03%
Net margin 46.17% 15.97% 13.53%
Free cash flow margin (128.52%) 75.61% 12.44%
Return on equity 11.09% 3.48% 4.83%
Return on assets 5.22% 1.57% 1.57%
Return on invested capital 5.38% 2.95% 3.04%

Growth

Metric CSWC MSDL Asset Management median
Revenue growth (TTM) 13.48% (9.57%) 6.97%
EPS growth (last fiscal year) 29.25% (42.39%) —
Revenue growth, 5-year CAGR 27.81% 78.53% 12.13%
Net income growth, 5-year CAGR 17.05% 46.17% 0.00%

Health

Metric CSWC MSDL Asset Management median
Debt to equity 0.62 1.20 0.42
Current ratio 0.17 1.71 1.28
Net debt to EBITDA 2.66 5.42 1.06

Dividend

Metric CSWC MSDL Asset Management median
Dividend yield 10.32% — 6.92%
Payout ratio 1.37 — 0.77

Size

Metric CSWC MSDL Asset Management median
Market cap 1.47b 1.21b 721.34m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack