Capital Southwest vs Virtus

This page compares Capital Southwest Corporation and Virtus Investment Partners, Inc. on business models, financial performance, and market context, presented in a neutral and accessible manner. It highlights key factors to aid understanding without endorsement. Educational content, not financial advice.

This page compares Capital Southwest Corporation and Virtus Investment Partners, Inc. on business models, financial performance, and market context, presented in a neutral and accessible manner. It hi...

Comparison Snapshot

Key Financial Metrics

CSWC

Metric

VRTS

$1.33B

Market Cap

$1.10B

3.32%

Potential Profit

8.22%

Buy

Analyst Rating

Hold

Investment Analysis

Capital Southwest

CSWC

Pros

Capital Southwest specializes in providing customized financing to middle market companies, focusing on flexible credit and equity investments.
The company reported a revenue increase of nearly 15% in 2024, reflecting growth in its credit and private equity segments.
Its dividend yield is very attractive at over 12%, supported by consistent monthly dividend payments including a supplemental dividend.

Considerations

Net income declined by approximately 16% in 2024 despite revenue growth, indicating potential margin pressures or increased expenses.
The firm's return on equity is moderate at around 8.8%, which is lower compared to some peers in the asset management sector.
Capital Southwest has relatively limited analyst coverage and a smaller market cap, which may constrain liquidity and investor interest.

Virtus

VRTS

Pros

Virtus Investment Partners has a strong and improving return on equity, currently at 18.5%, well above its 10-year average.
The company employs a multi-manager approach and quantitative analysis, offering diversified investment products including mutual funds and ETFs.
Virtus serves both individual and institutional clients, operating across public equity, fixed income, and real estate markets.

Considerations

Virtus has a smaller market capitalization of about $1.36 billion, which may limit scale advantages compared to larger asset managers.
Its stock price is relatively high, which might reflect elevated valuation metrics and limit near-term upside.
Performance benchmarking against the S&P 500 exposes the company to cyclical market risks and volatility inherent in public markets.

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.

Virtus (VRTS)

Virtus Investment Partners, Inc. is an American financial company that provides a broad range of investment management and related services. It caters to both institutional clients, like pension funds and other large organisations, and individual investors. The firm offers a diverse suite of investment strategies across various asset classes, including equities, fixed income, and alternatives. This diversification extends to different geographies (from domestic to emerging markets) and investment styles (such as growth, value, and core). Its products are distributed through multiple channels, including open-end and closed-end funds for retail customers, and separate accounts for larger institutional clients. This multi-faceted approach allows Virtus to serve a wide segment of the investment community. As with any investment management firm, its performance is closely tied to the fluctuations of financial markets, and the value of assets under management can rise and fall.

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Which Baskets Do They Appear In?

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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.

Published: October 15, 2025

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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.

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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

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Comparison Snapshot