Based on the aggregated intelligence of 115,000 investors participating in Motley Fool CAPS, the Fool's free investing community, real estate investment trust CapitalSource (NYSE:CSE) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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

CapitalSource facts 

Headquarters (Founded)

Chevy Chase, Md. (2000)

Market Cap

$3.2 billion


Credit Services

TTM Revenue

$595.5 million


CEO John Delaney (since 2000);

COO Dean Graham (since 2006)

Return on Equity (avg. last three years)


CAPS members bullish on CSE also bullish on


Starbucks (NASDAQ:SBUX),

Allied Irish Banks (NYSE:AIB)

CAPS members bearish on CSE also bearish on

Wachovia (NYSE:WB),

Washington Mutual (NYSE:WM),

Freddie Mac (NYSE:FRE)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, some 96% of the 377 All-Star members who have rated CapitalSource believe the stock will outperform the S&P 500 going forward. These All-Star bulls include JMJeffrey and TMFMattyA, both of whom are ranked in the top 20% of our community.

In March, JMJeffrey reassured our community about CapitalSource:

This is a good, profitable, well-run company sitting at a time when its industry and business is out of favor due to credit fears. Commercial credit at this point is not a culprit in this credit crisis so the market is handing us a dollar and saying its worth less than fifty cents. ... Thank you Mr. Market, outperform!

An earlier pitch from TMFMattyA in February agreed with that bullish reasoning, elaborating on the bargain opportunity being offered:

CSE is an extremely high-quality lender and specialty finance company whose stock price has been absolutely taken to the woodshed. Its focus is in the health care industry, and all of its residential loans are prime quality. With seasoned and shareholder-friendly management and a huge, yet sustainable, 15 percent dividend yield, CSE is a sure bet to beat the market long-term; especially once the furor in the credit markets dies down.

What do you think about CapitalSource, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

CapitalSource is a Motley Fool Income Investor pick. Starbucks is both an Inside Value and Stock Advisor pick. Apple is a Stock Advisor recommendation. Allied Irish Banks is a Global Gains pick. The Fool owns shares of CapitalSource, Starbucks, and Allied Irish Banks. Try any of our Foolish newsletter services, free for 30 days.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.