Capital Southwest Corporation (CSWC) vs Sixth Street Specialty Lending, Inc. (TSLX)

Capital Southwest Corporation and Sixth Street Specialty Lending, Inc. are both Asset Management companies. Sixth Street Specialty Lending, Inc. is the larger, with a market value of $1.7B against $1.5B — 1.2× the size. Capital Southwest Corporation trades at the lower P/E: 12.2× against 19.1×. Capital Southwest Corporation grew revenue faster over the last twelve months: 13.5% against −13.8%. Capital Southwest Corporation has the higher net margin (46.2% vs 21.8%) and the higher return on invested capital (5.38% vs 3.54%). Both pay a dividend; Capital Southwest Corporation yields more (10.3% vs 8.60%). Across the 21 metrics below, Capital Southwest Corporation leads on 16 and Sixth Street Specialty Lending, Inc. on 5.

Valuation

Metric CSWC TSLX Asset Management median
P/E 12.23 19.09 14.62
P/S 5.96 4.22 2.97
P/B 1.34 1.11 0.94
Price to free cash flow n/m 16.66 8.93
EV/EBITDA 9.73 12.70 10.32
EV/Sales 8.46 9.17 5.72
Earnings yield 8.17% 5.24% 4.53%
Free cash flow yield (21.59%) 6.00% 4.65%

Profitability

Metric CSWC TSLX Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 87.98% 75.07% 33.03%
Net margin 46.17% 21.77% 13.53%
Free cash flow margin (128.52%) 25.30% 12.44%
Return on equity 11.09% 5.62% 4.83%
Return on assets 5.22% 2.56% 1.57%
Return on invested capital 5.38% 3.54% 3.04%

Growth

Metric CSWC TSLX Asset Management median
Revenue growth (TTM) 13.48% (13.78%) 6.97%
EPS growth (last fiscal year) 29.25% (10.84%) —
Revenue growth, 5-year CAGR 27.81% 10.71% 12.13%
Net income growth, 5-year CAGR 17.05% (0.87%) 0.00%

Health

Metric CSWC TSLX Asset Management median
Debt to equity 0.62 1.24 0.42
Current ratio 0.17 9.83 1.28
Net debt to EBITDA 2.66 5.29 1.06

Dividend

Metric CSWC TSLX Asset Management median
Dividend yield 10.32% 8.60% 6.92%
Payout ratio 1.37 0.83 0.77

Size

Metric CSWC TSLX Asset Management median
Market cap 1.47b 1.73b 721.34m

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