Capital Southwest Corporation (CSWC) vs Trinity Capital Inc. (TRIN)

Capital Southwest Corporation and Trinity Capital Inc. are both Asset Management companies. Trinity Capital Inc. is the larger, with a market value of $1.7B against $1.5B — 1.1× the size. Trinity Capital Inc. trades at the lower P/E: 10.1× against 12.2×. Trinity Capital Inc. grew revenue faster over the last twelve months: 25.7% against 13.5%. Capital Southwest Corporation has the higher net margin (46.2% vs 44.5%) and the lower return on invested capital (5.38% vs 6.81%). Both pay a dividend; Trinity Capital Inc. yields more (14.3% vs 10.3%). Across the 21 metrics below, Trinity Capital Inc. leads on 14 and Capital Southwest Corporation on 7.

Valuation

Metric CSWC TRIN Asset Management median
P/E 12.23 10.09 14.62
P/S 5.96 4.75 2.97
P/B 1.34 1.26 0.94
Price to free cash flow n/m n/m 8.93
EV/EBITDA 9.73 7.18 10.32
EV/Sales 8.46 5.67 5.72
Earnings yield 8.17% 9.91% 4.53%
Free cash flow yield (21.59%) (37.20%) 4.65%

Profitability

Metric CSWC TRIN Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 87.98% 77.39% 33.03%
Net margin 46.17% 44.50% 13.53%
Free cash flow margin (128.52%) (176.44%) 12.44%
Return on equity 11.09% 13.66% 4.83%
Return on assets 5.22% 6.17% 1.57%
Return on invested capital 5.38% 6.81% 3.04%

Growth

Metric CSWC TRIN Asset Management median
Revenue growth (TTM) 13.48% 25.65% 6.97%
EPS growth (last fiscal year) 29.25% (6.67%) —
Revenue growth, 5-year CAGR 27.81% 39.81% 12.13%
Net income growth, 5-year CAGR 17.05% 0.00% 0.00%

Health

Metric CSWC TRIN Asset Management median
Debt to equity 0.62 0.22 0.42
Current ratio 0.17 0.05 1.28
Net debt to EBITDA 2.66 1.55 1.06

Dividend

Metric CSWC TRIN Asset Management median
Dividend yield 10.32% 14.34% 6.92%
Payout ratio 1.37 2.75 0.77

Size

Metric CSWC TRIN Asset Management median
Market cap 1.47b 1.66b 721.34m

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