TSLX vs FSK

For growth investors, FS KKR Capital Corp.

(FSK) is the stronger pick with 5. 5% revenue growth year-over-year, versus 0. 1% for Sixth Street Specialty Lending, Inc. (TSLX). Sixth Street Specialty Lending, Inc. (TSLX) offers the better valuation at 9. 9x trailing P/E (9. 1x forward), making it the more compelling value choice. Analysts rate Sixth Street Specialty Lending, Inc. (TSLX) a "Buy" — based on 17 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.

On trailing P/E, Sixth Street Specialty Lending, Inc.

(TSLX) is the cheapest at 9. 9x versus FS KKR Capital Corp. at 278. 4x. On forward P/E, FS KKR Capital Corp. is actually cheaper at 6. 4x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Sixth Street Specialty Lending, Inc.

(TSLX) delivered a total return of +28. 7%, compared to +16. 3% for FS KKR Capital Corp. (FSK). Over 10 years, the gap is even starker: TSLX returned +142. 2% versus FSK's +11. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Sixth Street Specialty Lending, Inc.

(TSLX) is the lower-risk stock at 0. 63β versus FS KKR Capital Corp. 's 0. 87β — meaning FSK is approximately 38% more volatile than TSLX relative to the S&P 500. On balance sheet safety, Sixth Street Specialty Lending, Inc. (TSLX) carries a lower debt/equity ratio of 108% versus 131% for FS KKR Capital Corp. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), FS KKR Capital Corp.

(FSK) is pulling ahead at 5. 5% versus 0. 1% for Sixth Street Specialty Lending, Inc. (TSLX). On earnings-per-share growth, the picture is similar: Sixth Street Specialty Lending, Inc. grew EPS -10. 8% year-over-year, compared to -98. 1% for FS KKR Capital Corp.. 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.

Sixth Street Specialty Lending, Inc.

(TSLX) is the more profitable company, earning 47. 3% net margin versus 0. 9% for FS KKR Capital Corp. — meaning it keeps 47. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TSLX leads at 53. 5% versus 49. 5% for FSK. At the gross margin level — before operating expenses — TSLX leads at 72. 8%, 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.

On forward earnings alone, FS KKR Capital Corp.

(FSK) trades at 6. 4x forward P/E versus 9. 1x for Sixth Street Specialty Lending, Inc. — 2. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FSK: 50. 8% to $16. 50.

All stocks in this comparison pay dividends.

FS KKR Capital Corp. (FSK) offers the highest yield at 25. 6%, versus 10. 1% for Sixth Street Specialty Lending, Inc. (TSLX).

For long-horizon retirement investors, Sixth Street Specialty Lending, Inc.

(TSLX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 63), 10. 1% yield, +142. 2% 10Y return). Both have compounded well over 10 years (TSLX: +142. 2%, FSK: +11. 2%), 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.

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.

In terms of investment character: TSLX is a small-cap deep-value stock; FSK is a small-cap income-oriented stock. 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.