Capital Southwest vs EZCORP

This page compares Capital Southwest Corporation and EZCORP Inc to present their business models, financial performance, and market context in a neutral, accessible way. It outlines how each company operates and the factors shaping their strategies, without making recommendations. Educational content, not financial advice.

This page compares Capital Southwest Corporation and EZCORP Inc to present their business models, financial performance, and market context in a neutral, accessible way. It outlines how each company o...

Comparison Snapshot

Key Financial Metrics

CSWC

Metric

EZPW

$1.33B

Market Cap

$1.29B

3.32%

Potential Profit

17.58%

Buy

Analyst Rating

Buy

Investment Analysis

Capital Southwest

CSWC

Pros

Capital Southwest has a diversified investment portfolio focused on credit and private equity in middle market companies, providing customized financing solutions.
The company reported revenue growth with a 2026 forecast increase of over 14%, reflecting expanding business scale and improving income streams.
It offers a high dividend yield of approximately 12.22%, which can be attractive for income-focused investors.

Considerations

Recent earnings per share (EPS) missed analyst expectations by around 4%, causing downward pressure on the stock price.
Regulatory leverage increased from 0.82 to 0.91, indicating a higher risk profile related to debt levels.
There is some analyst uncertainty as FY2026 EPS estimates were recently lowered, reflecting potential earnings execution risks.

EZCORP

EZPW

Pros

EZCORP operates in niche markets providing pawn loans secured by tangible personal property across the US and Latin America, offering geographic and product diversity.
The company has shown a positive three-year average return on equity (ROE) of 7.58%, indicating moderate profitability improvement over recent years.
EZCORP's business model includes collateralised lending, which can help mitigate credit risk compared to unsecured lending.

Considerations

ROE levels remain below Capital Southwest and several other competitors, reflecting comparatively lower profitability.
The business is exposed to economic cycles and regulatory changes in both the US and Latin American markets, which could affect loan demand and credit quality.
EZCORP's historical profitability has been inconsistent, with a negative 10-year average ROE, highlighting execution and structural challenges.

About The Companies

Capital Southwest (CSWC)

Capital Southwest Corporation (CSWC) is a US-listed business development company (BDC) with a market capitalisation of about $1.15 billion. It provides debt and equity financing primarily to US middle-market companies, earning income from interest, fees and occasionally equity appreciation. CSWC uses leverage to enhance returns, which can amplify both gains and losses and makes net asset value (NAV) sensitive to credit performance and interest rates. The company typically aims to deliver regular distributions, but dividend levels depend on realised income and portfolio valuations. Investors should note liquidity is market-driven — shares trade on an exchange but can be volatile — and BDC fee structures and portfolio concentration can affect outcomes. This summary is educational and not personal advice: consider your income needs, risk tolerance and the credit cycle before investing, and review the company’s latest filings and NAV updates for current detail.

EZCORP (EZPW)

EZCORP Inc. is a leading provider of pawn transactions, operating primarily in the United States and Latin America. The company offers instant cash by providing loans in exchange for personal items, known as collateral. If the loan is not repaid, EZCORP takes ownership of the item and can sell it in its retail stores. This dual revenue stream comes from both the interest charged on pawn loans and the sale of pre-owned merchandise. Its main US brands include EZPAWN and Value Pawn & Jewelry, while its Latin American presence spans Mexico, Guatemala, El Salvador, and Honduras. For investors, EZCORP represents an interesting play within the alternative financial services sector. As with any investment, the value can go down as well as up, and returns are not guaranteed. It's important for potential investors to consider if this type of company aligns with their financial goals and risk tolerance.

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Federal Reserve Chair Jerome Powell has signaled a potential conclusion to the central bank's balance sheet reduction, a move that would inject more liquidity into financial markets. This policy shift creates an opportunity for companies sensitive to interest rates and capital availability, particularly within the technology and financial sectors.

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Comparison Snapshot