CSWC
Capital Southwest Corporation
Asset Management
Market Cap$1.44B
5Y Perf.+73.8%
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Stock Comparison
CSWC vs PFLT
Revenue, margins, valuation, and 5-year total return — side by side.
PFLT
PennantPark Floating Rate Capital Ltd.
Asset Management
Market Cap$908M
5Y Perf.+10.0%
CSWC vs PFLT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | CSWC | PFLT |
|---|---|---|
| Industry | Asset Management | Asset Management |
| Market Cap | $1.44B | $908M |
| Revenue (TTM) | $164M | $172M |
| Net Income (TTM) | $103M | $34M |
| Gross Margin | 66.5% | 45.6% |
| Operating Margin | 48.5% | 39.4% |
| Forward P/E | 10.2x | 8.1x |
| Total Debt | $956M | $1.78B |
| Cash & Equiv. | $43M | $123M |
CSWC vs PFLT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
CSWC
PFLT
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Capital Southwest C… (CSWC) | 100 | 173.8 | +73.8% |
| PennantPark Floatin… (PFLT) | 100 | 110.0 | +10.0% |
Price return only. Dividends and distributions are not included.
Quick Verdict: CSWC vs PFLT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: PFLT leads in 5 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Capital Southwest Corporation is the stronger pick specifically for growth and revenue expansion and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
CSWC
Capital Southwest Corporation
The Banking Pick
CSWC is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 7.7%, EPS growth -28.3%
- 232.4% 10Y total return vs PFLT's 78.8%
- NIM 7.0% vs PFLT's 5.0%
Best for: growth exposure and long-term compounding
PFLT
PennantPark Floating Rate Capital Ltd.
The Banking Pick
PFLT carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 3 yrs, beta 0.79, yield 13.2%
- Lower volatility, beta 0.79, current ratio 2.94x
- Beta 0.79, yield 13.2%, current ratio 2.94x
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | CSWC | 7.7% NII/revenue growth vs PFLT's 2.2% |
| Value | PFLT | Lower P/E (8.1x vs 10.2x) |
| Quality / Margins | PFLT | Efficiency ratio 0.1% vs CSWC's 0.2% (lower = leaner) |
| Stability / Safety | PFLT | Beta 0.79 vs CSWC's 0.84 |
| Dividends | PFLT | 13.2% yield, 3-year raise streak, vs CSWC's 10.1% |
| Momentum (1Y) | CSWC | +34.7% vs PFLT's +3.2% |
| Efficiency (ROA) | PFLT | Efficiency ratio 0.1% vs CSWC's 0.2% |
CSWC vs PFLT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLCSWCLAGGINGPFLT
PFLTPennantPark Floating …
2leads
CSWCCapital Southwest Cor…
3leads
6 Total Categories
CATEGORYLEADERvs PFLTMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
CSWC4/5
Valuation MetricsMultiples, price ratios, and targets
PFLT4/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
CSWC8/9
Total Returns1Y, 3Y, 5Y total returns with dividends
CSWC6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
PFLT1/1
Income & Cash Flow (Last 12 Months)
CSWC leads this category, winning 4 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
PFLT and CSWC operate at a comparable scale, with $172M and $164M in trailing revenue. Profitability is closely matched — net margins range from 43.1% (CSWC) to 38.7% (PFLT).
| Metric | CSWCCapital Southwest… | PFLTPennantPark Float… |
|---|---|---|
| RevenueTrailing 12 months | $164M | $172M |
| EBITDAEarnings before interest/tax | $142M | $36M |
| Net IncomeAfter-tax profit | $103M | $34M |
| Free Cash FlowCash after capex | -$69M | $100M |
| Gross MarginGross profit ÷ Revenue | +66.5% | +45.6% |
| Operating MarginEBIT ÷ Revenue | +48.5% | +39.4% |
| Net MarginNet income ÷ Revenue | +43.1% | +38.7% |
| FCF MarginFCF ÷ Revenue | -132.6% | +55.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +113.3% | -110.3% |
CSWC leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
PFLT leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
At 12.7x trailing earnings, PFLT trades at a 23% valuation discount to CSWC's 16.5x P/E. On an enterprise value basis, CSWC's 27.6x EV/EBITDA is more attractive than PFLT's 38.0x.
| Metric | CSWCCapital Southwest… | PFLTPennantPark Float… |
|---|---|---|
| Market CapShares × price | $1.4B | $908M |
| Enterprise ValueMkt cap + debt − cash | $2.4B | $2.6B |
| Trailing P/EPrice ÷ TTM EPS | 16.53x | 12.71x |
| Forward P/EPrice ÷ next-FY EPS est. | 10.19x | 8.11x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.43x |
| EV / EBITDAEnterprise value multiple | 27.65x | 37.96x |
| Price / SalesMarket cap ÷ Revenue | 8.82x | 5.29x |
| Price / BookPrice ÷ Book value/share | 1.41x | 0.79x |
| Price / FCFMarket cap ÷ FCF | — | 9.55x |
PFLT leads this category, winning 4 of 5 comparable metrics.
Profitability & Efficiency
CSWC leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
CSWC delivers a 10.3% return on equity — every $100 of shareholder capital generates $10 in annual profit, vs $3 for PFLT. CSWC carries lower financial leverage with a 1.08x debt-to-equity ratio, signaling a more conservative balance sheet compared to PFLT's 1.65x. On the Piotroski fundamental quality scale (0–9), PFLT scores 4/9 vs CSWC's 1/9, reflecting mixed financial health.
| Metric | CSWCCapital Southwest… | PFLTPennantPark Float… |
|---|---|---|
| ROE (TTM)Return on equity | +10.3% | +3.2% |
| ROA (TTM)Return on assets | +4.8% | +1.3% |
| ROICReturn on invested capital | +3.5% | +2.1% |
| ROCEReturn on capital employed | +4.6% | +2.7% |
| Piotroski ScoreFundamental quality 0–9 | 1 | 4 |
| Debt / EquityFinancial leverage | 1.08x | 1.65x |
| Net DebtTotal debt minus cash | $913M | $1.7B |
| Cash & Equiv.Liquid assets | $43M | $123M |
| Total DebtShort + long-term debt | $956M | $1.8B |
| Interest CoverageEBIT ÷ Interest expense | 2.91x | 0.36x |
CSWC leads this category, winning 8 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
CSWC leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in CSWC five years ago would be worth $15,178 today (with dividends reinvested), compared to $11,865 for PFLT. Over the past 12 months, CSWC leads with a +34.7% total return vs PFLT's +3.2%. The 3-year compound annual growth rate (CAGR) favors CSWC at 21.3% vs PFLT's 6.5% — a key indicator of consistent wealth creation.
| Metric | CSWCCapital Southwest… | PFLTPennantPark Float… |
|---|---|---|
| YTD ReturnYear-to-date | +12.8% | +1.7% |
| 1-Year ReturnPast 12 months | +34.7% | +3.2% |
| 3-Year ReturnCumulative with dividends | +78.4% | +20.9% |
| 5-Year ReturnCumulative with dividends | +51.8% | +18.7% |
| 10-Year ReturnCumulative with dividends | +232.4% | +78.8% |
| CAGR (3Y)Annualised 3-year return | +21.3% | +6.5% |
CSWC leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — CSWC and PFLT each lead in 1 of 2 comparable metrics.
Risk & Volatility
PFLT is the less volatile stock with a 0.79 beta — it tends to amplify market swings less than CSWC's 0.84 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CSWC currently trades 99.5% from its 52-week high vs PFLT's 84.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CSWCCapital Southwest… | PFLTPennantPark Float… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.84x | 0.79x |
| 52-Week HighHighest price in past year | $24.42 | $10.88 |
| 52-Week LowLowest price in past year | $19.37 | $7.68 |
| % of 52W HighCurrent price vs 52-week peak | +99.5% | +84.1% |
| RSI (14)Momentum oscillator 0–100 | 63.7 | 68.2 |
| Avg Volume (50D)Average daily shares traded | 663K | 997K |
Evenly matched — CSWC and PFLT each lead in 1 of 2 comparable metrics.
Analyst Outlook
PFLT leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates CSWC as "Buy" and PFLT as "Buy". Consensus price targets imply 14.8% upside for PFLT (target: $11) vs -7.4% for CSWC (target: $23). For income investors, PFLT offers the higher dividend yield at 13.18% vs CSWC's 10.07%.
| Metric | CSWCCapital Southwest… | PFLTPennantPark Float… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $22.50 | $10.50 |
| # AnalystsCovering analysts | 10 | 11 |
| Dividend YieldAnnual dividend ÷ price | +10.1% | +13.2% |
| Dividend StreakConsecutive years of raises | 3 | 3 |
| Dividend / ShareAnnual DPS | $2.45 | $1.21 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
PFLT leads this category, winning 1 of 1 comparable metric.
Key Takeaway
CSWC leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). PFLT leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
Best OverallCapital Southwest Corporati… (CSWC)Leads 3 of 6 categories
Loading custom metrics...
CSWC vs PFLT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is CSWC or PFLT a better buy right now?
For growth investors, Capital Southwest Corporation (CSWC) is the stronger pick with 7.
7% revenue growth year-over-year, versus 2. 2% for PennantPark Floating Rate Capital Ltd. (PFLT). PennantPark Floating Rate Capital Ltd. (PFLT) offers the better valuation at 12. 7x trailing P/E (8. 1x forward), making it the more compelling value choice. Analysts rate Capital Southwest Corporation (CSWC) a "Buy" — based on 10 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CSWC or PFLT?
On trailing P/E, PennantPark Floating Rate Capital Ltd.
(PFLT) is the cheapest at 12. 7x versus Capital Southwest Corporation at 16. 5x. On forward P/E, PennantPark Floating Rate Capital Ltd. is actually cheaper at 8. 1x.
03Which is the better long-term investment — CSWC or PFLT?
Over the past 5 years, Capital Southwest Corporation (CSWC) delivered a total return of +51.
8%, compared to +18. 7% for PennantPark Floating Rate Capital Ltd. (PFLT). Over 10 years, the gap is even starker: CSWC returned +232. 4% versus PFLT's +78. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CSWC or PFLT?
By beta (market sensitivity over 5 years), PennantPark Floating Rate Capital Ltd.
(PFLT) is the lower-risk stock at 0. 79β versus Capital Southwest Corporation's 0. 84β — meaning CSWC is approximately 6% more volatile than PFLT relative to the S&P 500. On balance sheet safety, Capital Southwest Corporation (CSWC) carries a lower debt/equity ratio of 108% versus 165% for PennantPark Floating Rate Capital Ltd. — giving it more financial flexibility in a downturn.
05Which is growing faster — CSWC or PFLT?
By revenue growth (latest reported year), Capital Southwest Corporation (CSWC) is pulling ahead at 7.
7% versus 2. 2% for PennantPark Floating Rate Capital Ltd. (PFLT). On earnings-per-share growth, the picture is similar: Capital Southwest Corporation grew EPS -28. 3% year-over-year, compared to -48. 6% for PennantPark Floating Rate Capital Ltd.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — CSWC or PFLT?
Capital Southwest Corporation (CSWC) is the more profitable company, earning 43.
1% net margin versus 38. 7% for PennantPark Floating Rate Capital Ltd. — meaning it keeps 43. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CSWC leads at 48. 5% versus 39. 4% for PFLT. At the gross margin level — before operating expenses — CSWC leads at 66. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is CSWC or PFLT more undervalued right now?
On forward earnings alone, PennantPark Floating Rate Capital Ltd.
(PFLT) trades at 8. 1x forward P/E versus 10. 2x for Capital Southwest Corporation — 2. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PFLT: 14. 8% to $10. 50.
08Which pays a better dividend — CSWC or PFLT?
All stocks in this comparison pay dividends.
PennantPark Floating Rate Capital Ltd. (PFLT) offers the highest yield at 13. 2%, versus 10. 1% for Capital Southwest Corporation (CSWC).
09Is CSWC or PFLT better for a retirement portfolio?
For long-horizon retirement investors, Capital Southwest Corporation (CSWC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
84), 10. 1% yield, +232. 4% 10Y return). Both have compounded well over 10 years (CSWC: +232. 4%, PFLT: +78. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between CSWC and PFLT?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(CSWC: 7.7% · PFLT: 2.2%)Net Margin>
%
(CSWC: 43.1% · PFLT: 38.7%)P/E Ratio<
x
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