Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, private equity firm American Capital (NASDAQ:ACAS) has earned a coveted five-star ranking.

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

American Capital facts

Headquarters (founded)

Bethesda, Md. (1986)

Market Cap

$4.2 billion

Industry

Asset management

Trailing-12-Month Revenue

$630.0 million

Management

Founder / Chairman / CEO Malon Wilkus
CFO John Erickson

Return on Equity (average, past 3 years)

26.2%

Cash / Debt

$360.0 million / $662.0 million

Competitors

Ares Capital 
Fortress Investment Group
MCG Capital 

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

On CAPS, 95% of the 2,056 members who have rated American Capital believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, All-Star NovaTodd, succinctly summed up the bull case for our community:

American Capital continues to buy dollar bills for 70 cents by repurchasing its own shares at a discount to tangible book. So long as the stock trades at a discount to NAV, the company will continue to create shareholder value through the repurchase; if and when the price catches up with NAV, the resumption of a dividend could act as a catalyst for the share price.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.