Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, business development company (BDC) American Capital (NASDAQ:ACAS) has earned a respected four-star ranking.

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

American Capital facts

Headquarters (Founded)

Bethesda, Md. (1986)

Market Cap

$702.1 million


Diversified investments

Trailing-12-Month Revenue

$732 million


Chairman/CEO Malon Wilkus
CFO John Erickson

Return on Capital (Average, Past 3 Years)



Allied Capital (NYSE:ALD)
CapitalSource (NYSE:CSE)

CAPS Members Bullish on ACAS Also Bullish on

General Electric (NYSE:GE)
Johnson & Johnson (NYSE:JNJ)

CAPS Members Bearish on ACAS Also Bearish on

Citigroup (NYSE:C)
Bank of America (NYSE:BAC)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 2,044 members who have rated American Capital believe the stock will outperform the S&P 500 going forward. These bulls include mindfullone55 and jabifool.

Late last month, mindfullone55 tapped the stock as a particularly timely turnaround play:

If [American Capital] can dodge the pile of short-term debt due, then it has a great chance at getting to a more respectable price. It is priced low probably because of this looming debt, check back around early Jan. to see how it is doing. The book value is just too good not to watch!

In a pitch from two weeks ago, jabifool follows that bullish line of thinking:

[American Capital] is currently (12/18/09) trading at about 34% of book value, primarily due to concerns re: its covenant breach capital lenders…Given the company very reasonable management of its assets, the persistent demand for its product (lending to mid-market companies, with a general ability to generate reasonable cash flow) there's a good chance for the stock price to double or more, once the company achieves the desired restructuring of its debt with it creditors.

What do you think about American Capital, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Johnson & Johnson is a Motley Fool Income Investor pick. The Fool owns shares of CapitalSource. The Fool's disclosure policy always gets a perfect score.