` Comparison: CSWC vs BK - Alpha Spread

CSWC
vs
BK

Over the past 12 months, CSWC has underperformed BK, delivering a return of -5% compared to the BK's +35% growth.

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CSWC
BK
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Valuation Comparison

CSWC Intrinsic Value
26.48 USD
Undervaluation 17%
Intrinsic Value
Price
BK Intrinsic Value
121.17 USD
Undervaluation 2%
Intrinsic Value
Price
Company Last Price Intrinsic Value DCF Value Relative Value Wall St Target
Capital Southwest Corp
NASDAQ:CSWC
21.96 USD
Bank of New York Mellon Corp
NYSE:BK
119.08 USD
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
CSWC, BK

CSWC
BK
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Capital Southwest Corp
Revenue
Bank of New York Mellon Corp
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
CSWC, BK

CSWC
BK
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Capital Southwest Corp
NASDAQ:CSWC
Bank of New York Mellon Corp
NYSE:BK
FCF is not applicable for financial companies
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What is Free Cash Flow?

Gross Margin

CSWC
71.5%
BK
LTM 3Y Avg 5Y Avg 10Y Avg
Capital Southwest Corp
Bank of New York Mellon Corp
Not applicable for financial companies

Operating Margin

CSWC
57.3%
BK
LTM 3Y Avg 5Y Avg 10Y Avg
Capital Southwest Corp
Bank of New York Mellon Corp
Not applicable for financial companies

Net Margin

CSWC
45.5%
BK
26.4%

FCF Margin

CSWC
-85.4%
BK
LTM 3Y Avg 5Y Avg 10Y Avg
Capital Southwest Corp
Bank of New York Mellon Corp
Not applicable for financial companies

ROE

CSWC
11.3%
BK
12.4%

ROA

CSWC
5.3%
BK
1.2%

ROIC

CSWC
6.7%
BK
LTM 3Y Avg 5Y Avg 10Y Avg
Capital Southwest Corp
Bank of New York Mellon Corp
Not applicable for financial companies

ROCE

CSWC
6.7%
BK
LTM 3Y Avg 5Y Avg 10Y Avg
Capital Southwest Corp
Bank of New York Mellon Corp
Not applicable for financial companies

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
CSWC, BK

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Performance Gap
CSWC, BK

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CSWC
BK
Difference
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Performance By Year
CSWC, BK

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CSWC
BK
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Compare CSWC to other stocks
BLK
BlackRock Inc
More expensive
vs CSWC
BX
Blackstone Inc
Cheaper
vs CSWC
BN
Brookfield Corp
Cheaper
vs CSWC
NY1
Ninety One Ltd
N
More expensive
vs CSWC
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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett