Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, business development company MVC Capital (NYSE:MVC) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks woefully lag the market average.

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

MVC facts

Headquarters (founded)

Purchase, N.Y. (1999)

Market Cap

$268 million


Closed-End Fund

TTM Revenue

$30 million


Chairman/CEO Michael Tokarz

CFO Peter Seidenberg

Return on Equity (average, last three years)


Dividend Yield



Harris & Harris (NASDAQ:TINY),

Allied Capital (NYSE:ALD)

CAPS members bullish on MVC also bullish on:

American Oriental Bioengineering (NYSE:AOB),

Middleby (NASDAQ:MIDD)

CAPS members bearish on MVC also bearish on:

Citigroup (NYSE:C),

Starbucks (NASDAQ:SBUX)

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

Over on CAPS, 99% of the 1,002 members who have rated MVC believe the stock will outperform the S&P 500 going forward. These bulls include FAOFool and CAPS All-Star TSIF.

Last week, FAOFool tapped MVC as a way to get the best of several investment worlds: "Offering a solid dividend, selling below book value, with a P/E of 4.2...this is a value play. Given it's small size, though, this company will provide healthy returns for years to come."

In a more detailed pitch from late last month, TSIF elaborates on that bullish logic:

Price well below book and NAV. IF you understand these type of plays (buy what you know), then upside here is very good for someone patient with a small amount of risk. Strong dividends, core business is in a strong/unique opportunity. If they do what they do best, invest in distressed or growth companies that are willing to deal and then grow, then return could be substantial ... Stronger play than [Harris & Harris] and risk/reward there. Having the word Capital in it's name is clearly depressing some investors, who once burned, will heal and forget to buy again.....

What do you think about MVC, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. MVC, American Oriental Bioengineering, and Middleby are Motley Fool Hidden Gems picks. Harris & Harris is a Rule Breakers choice. Starbucks is a selection of Inside Value and Stock Advisor. The Fool owns shares of MVC, American Oriental, and Starbucks. The Fool's disclosure policy always gets a perfect score.