Financial Comparison: Capital Southwest Corporation (CSWC) & iShares S&P NA Tec. Semi. Idx. Fd.(ETF) (SOXX)
Capital Southwest Corporation (NASDAQ: CSWC) and iShares S&P NA Tec. Semi. Idx. Fd.(ETF) (NASDAQ:SOXX) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.
Capital Southwest Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 5.0%. iShares S&P NA Tec. Semi. Idx. Fd.(ETF) does not pay a dividend. Capital Southwest Corporation pays out 51.2% of its earnings in the form of a dividend.
Institutional & Insider Ownership
61.8% of Capital Southwest Corporation shares are held by institutional investors. 5.9% of Capital Southwest Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Capital Southwest Corporation and iShares S&P NA Tec. Semi. Idx. Fd.(ETF)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Capital Southwest Corporation||96.98%||4.34%||3.86%|
|iShares S&P NA Tec. Semi. Idx. Fd.(ETF)||537.77%||16.94%||16.29%|
This is a summary of recent ratings and price targets for Capital Southwest Corporation and iShares S&P NA Tec. Semi. Idx. Fd.(ETF), as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Capital Southwest Corporation||0||1||2||0||2.67|
|iShares S&P NA Tec. Semi. Idx. Fd.(ETF)||0||5||1||0||2.17|
Capital Southwest Corporation presently has a consensus price target of $20.67, indicating a potential upside of 23.75%. iShares S&P NA Tec. Semi. Idx. Fd.(ETF) has a consensus price target of $170.00, indicating a potential upside of 14.18%. Given Capital Southwest Corporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe Capital Southwest Corporation is more favorable than iShares S&P NA Tec. Semi. Idx. Fd.(ETF).
Earnings & Valuation
This table compares Capital Southwest Corporation and iShares S&P NA Tec. Semi. Idx. Fd.(ETF)’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Capital Southwest Corporation||$27.04 million||9.89||$15.30 million||$1.64||10.18|
|iShares S&P NA Tec. Semi. Idx. Fd.(ETF)||N/A||N/A||N/A||N/A||N/A|
Capital Southwest Corporation has higher revenue and earnings than iShares S&P NA Tec. Semi. Idx. Fd.(ETF).
Capital Southwest Corporation beats iShares S&P NA Tec. Semi. Idx. Fd.(ETF) on 7 of the 11 factors compared between the two stocks.
About Capital Southwest Corporation
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.
About iShares S&P NA Tec. Semi. Idx. Fd.(ETF)
iShares PHLX Semiconductor ETF, formerly iShares PHLX SOX Semiconductor Sector Index Fund (the Fund), is an exchange-traded fund. The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the United States-listed semiconductor stocks as represented by the PHLX Semiconductor Sector Index (the Index). The Index is an equity benchmark for the United States-listed semiconductor stocks. The Index includes companies primarily involved in the design, distribution, manufacture and sale of semiconductors. The Fund generally invests at least 90% of its assets in securities of the Index and in depositary receipts representing securities of the Index. BlackRock Fund Advisors (BFA) serves as the investment adviser to the Fund.
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