Why Capital Southwest Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, public investment firm Capital Southwest (NASDAQ: CSWC  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Capital Southwest and see what CAPS investors are saying about the stock right now.

Capital Southwest facts

Headquarters (founded)

Dallas, Texas (1961)

Market Cap

$459.6 million

Industry

Asset management

Trailing-12-Month Revenue

$11.0 million

Management

Chairman/CEO Gary Martin
COO/CFO Tracy Morris

Return on Equity (average, past 3 years)

14.6%

Cash / Debt

$67.6 million / $0

Dividend Yield

4.6%

Competitors

American Capital
Ares Capital 
Gladstone Capital 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 90% of the 99 members who have rated Capital Southwest believe the stock will outperform the S&P 500 going forward.

Earlier today, one of those Fools, thecinimod, succinctly summed up the Capital Southwest bull case for our community:

This is a solid investment company appropriately described as a mini Berkshire Hathaway (NYSE: BRK-B  ) . It is currently trading for about 70% of the [book value] of the assets it owns, which are themselves public companies and fairly easily and transparently valued, and it has sizable insider ownership -- always a good sign. To paraphrase Buffet, you can make a lot of money when you buy dollars for 70c, and that's what this company is.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Capital Southwest may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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