Capital Southwest (NASDAQ: CSWC) and Man Group (OTCMKTS:MNGPY) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.
Volatility & Risk
Capital Southwest has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Man Group has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
56.6% of Capital Southwest shares are held by institutional investors. 5.9% of Capital Southwest shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Capital Southwest pays an annual dividend of $1.12 per share and has a dividend yield of 6.6%. Man Group pays an annual dividend of $0.08 per share and has a dividend yield of 3.3%. Capital Southwest pays out 59.6% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Capital Southwest and Man Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Capital Southwest||$23.50 million||11.77||$23.47 million||$1.88||9.09|
|Man Group||$827.00 million||4.77||-$266.00 million||N/A||N/A|
Capital Southwest has higher earnings, but lower revenue than Man Group.
This is a breakdown of recent ratings and price targets for Capital Southwest and Man Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Capital Southwest currently has a consensus target price of $20.00, indicating a potential upside of 17.10%. Given Capital Southwest’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Capital Southwest is more favorable than Man Group.
This table compares Capital Southwest and Man Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Capital Southwest beats Man Group on 11 of the 14 factors compared between the two stocks.
Capital Southwest Company Profile
Capital Southwest Corporation is an investment company that specializes in providing customized financing to middle market companies in a range of industry segments located primarily in the United States. The Company is a specialty lending company. Its principal investment objective is to produce risk-adjusted returns by generating current income from debt investments and capital appreciation from its equity and equity related investments. It focuses on partnering with business owners, management teams and financial sponsors to provide financing solutions to fund growth, changes of control, or other corporate events. In allocating future investments, it focuses on investing in senior and subordinated debt securities secured by security interests in portfolio company assets, coupled with equity interests. It targets senior and subordinated investments in the lower middle market and private loan transactions, as well as first and second lien syndicated loans in middle market companies.
Man Group Company Profile
Man Group plc provides alternative investment management services worldwide. The company offers a range of liquid investment products and solutions, which include quantitative and discretionary, long only and long short, and single and multi-manager. It distributes its products and solutions directly to institutions; and to private investors through a network of intermediaries. Man Group plc was founded in 1783 and is headquartered in London, the United Kingdom.
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