Capital Southwest vs Trinity Capital

This page compares Capital Southwest Corporation and TRINITY CAPITAL INC, outlining their business models, financial performance, and market context in clear, neutral terms. It aims to be accessible and informative, without promoting any investment decision. Educational content, not financial advice.

This page compares Capital Southwest Corporation and TRINITY CAPITAL INC, outlining their business models, financial performance, and market context in clear, neutral terms. It aims to be accessible a...

Comparison Snapshot

Key Financial Metrics

CSWC

Metric

TRIN

$1.33B

Market Cap

$1.22B

3.32%

Potential Profit

0.70%

Buy

Analyst Rating

Buy

Investment Analysis

Capital Southwest

CSWC

Pros

Capital Southwest has a strong 12-month analyst price target upside of around 12.6% to 16.5%, indicating positive market expectations.
The company achieved a 14.77% revenue increase in 2024, demonstrating solid top-line growth.
Capital Southwest offers a high dividend yield of approximately 12.22%, providing attractive income for investors.

Considerations

Earnings decreased by about 16.23% in 2024 despite revenue growth, reflecting potential profitability pressure.
The company operates with a moderate return on equity of around 8.78%, which may be less attractive compared to higher return peers.
Capital Southwest's investment focus excludes early-stage startups and certain risky sectors, which could limit growth opportunities.

Trinity Capital

TRIN

Pros

Trinity Capital specialises in niche markets such as venture debt, equipment financing, and private equity-related investments for growth-stage companies.
The firm showed strong profitability with an EPS of 2.02 and a remarkable net profit margin of about 52.93%.
Trinity Capital has a diversified lending portfolio including tech lending, life sciences, and sponsor finance, offering potential resilience.

Considerations

The company has a high debt-to-equity ratio of approximately 117.7%, indicating higher financial leverage and potential risk.
Financial health is rated weak with a low score, reflecting some concerns around balance sheet strength or liquidity.
Despite strong past performance, future growth prospects are rated very low, suggesting challenges ahead in sustaining expansion.

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.

Trinity Capital (TRIN)

Trinity Capital Inc. is an internally managed speciality finance firm that operates as a business development company (BDC). It focuses on providing debt and equity financing to growth-stage companies, particularly those backed by venture capital or institutional investors. Its core business involves offering term loans, equipment financing, and working capital loans. The company's investment objective is to generate both current income, primarily from the interest on its loans, and long-term capital appreciation from its equity-related investments. By investing across various vertical markets, Trinity Capital aims to support innovative businesses while seeking returns for its shareholders. As a BDC, it offers a way for investors to gain exposure to private, emerging companies that are not typically available on public stock exchanges. Of course, investments in smaller, growth-stage companies can carry higher risks.

Which Baskets Do They Appear In?

Fed Policy Pivot | Tech and Financial Stock Opportunities

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.

Published: October 15, 2025

Explore Basket

Capital Returns: The Shareholder Yield Play

Following Charles Schwab's massive $20 billion stock buyback and dividend increase, this theme focuses on other financially robust companies that are similarly rewarding their investors. The strategy is to invest in firms with strong cash flows and a commitment to returning capital to shareholders.

Published: July 25, 2025

Explore Basket

Wall Street's Private Credit Push

This carefully selected group of stocks represents companies positioned to benefit from the major shift toward private credit on Wall Street. Professional investors have identified these Business Development Companies as potential winners from JPMorgan's strategic move into alternative lending, which could drive new partnerships and increased deal flow.

Published: July 15, 2025

Explore Basket

Which Baskets Do They Appear In?

Fed Policy Pivot | Tech and Financial Stock Opportunities

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.

Published: October 15, 2025

Explore Basket

Capital Returns: The Shareholder Yield Play

Following Charles Schwab's massive $20 billion stock buyback and dividend increase, this theme focuses on other financially robust companies that are similarly rewarding their investors. The strategy is to invest in firms with strong cash flows and a commitment to returning capital to shareholders.

Published: July 25, 2025

Explore Basket

Wall Street's Private Credit Push

This carefully selected group of stocks represents companies positioned to benefit from the major shift toward private credit on Wall Street. Professional investors have identified these Business Development Companies as potential winners from JPMorgan's strategic move into alternative lending, which could drive new partnerships and increased deal flow.

Published: July 15, 2025

Explore Basket

Financially Fit

These carefully selected companies showcase exceptional financial discipline with fortress-like balance sheets. Our professional analysts have identified businesses with minimal debt and strong cash positions, giving them the resilience to thrive in any economic environment.

Published: June 18, 2025

Explore Basket

Lean & Mean

These companies have turned operational efficiency into an art form. Carefully selected by our expert investors, this collection features businesses that excel at maximizing profits while minimizing waste, creating resilient performers in any economic climate.

Published: June 17, 2025

Explore Basket

Corporate Dragons: The Fortresses

Meet the financial titans built on massive cash reserves and minimal debt. These carefully selected companies offer exceptional stability during economic turbulence, giving your portfolio a strong defensive anchor when markets get rough.

Published: June 17, 2025

Explore Basket

Discover More Comparisons

Capital Southwest vs P10

Capital Southwest vs EZCORP

Capital Southwest vs Preferred Bank

Capital Southwest vs Preferred Bank: a comparison

Capital Southwest vs Trinity Capital

Comparison Snapshot