ARCC vs. CSWC
ARCC (Ares Capital Corporation) and CSWC (Capital Southwest Corporation) are both stocks. Both operate in the Asset Management industry within the Financial Services sector. Over the past 10 years, ARCC returned 12.48%/yr vs 17.37%/yr for CSWC. At a 0.42 correlation, their price movements are largely independent.
Performance
ARCC vs. CSWC - Performance Comparison
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Returns By Period
In the year-to-date period, ARCC achieves a -1.16% return, which is significantly lower than CSWC's 14.80% return. Over the past 10 years, ARCC has underperformed CSWC with an annualized return of 12.48%, while CSWC has yielded a comparatively higher 17.37% annualized return.
ARCC
- 1D
- -0.99%
- 1M
- 5.27%
- 6M
- -4.32%
- YTD
- -1.16%
- 1Y
- -9.88%
- 3Y*
- 8.83%
- 5Y*
- 8.74%
- 10Y*
- 12.48%
- ALL TIME*
- 12.05%
CSWC
- 1D
- -1.81%
- 1M
- 4.68%
- 6M
- 6.50%
- YTD
- 14.80%
- 1Y
- 14.93%
- 3Y*
- 16.95%
- 5Y*
- 10.62%
- 10Y*
- 17.37%
- ALL TIME*
- 12.03%
ARCC vs. CSWC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | -1.16% | 1.07% | 19.78% | 20.03% | -3.84% | 36.14% | 0.86% | 31.30% | 8.81% | 4.50% |
CSWC Capital Southwest Corporation | 14.80% | 14.28% | 2.14% | 56.10% | -24.63% | 57.40% | -1.56% | 22.80% | 29.52% | 9.99% |
Correlation
The correlation between ARCC and CSWC is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.70 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.65 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.63 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.49 |
Correlation (All Time) Calculated using the full available price history since Oct 6, 2004 | 0.42 |
Over the past year, ARCC and CSWC have become more correlated (0.70) than their long-term average of 0.42, meaning their price movements have been converging.
Fundamentals
ARCC:
$13.63B
CSWC:
$1.48B
ARCC:
$1.62
CSWC:
$1.75
ARCC:
11.70
CSWC:
13.66
ARCC:
1.75
CSWC:
1.03
ARCC:
5.11
CSWC:
6.95
ARCC:
0.97
CSWC:
1.47
ARCC:
$2.63B
CSWC:
$222.04M
ARCC:
$1.86B
CSWC:
$172.70M
ARCC:
$2.05B
CSWC:
$142.78M
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Return for Risk
ARCC vs. CSWC — Risk / Return Rank
ARCC
CSWC
ARCC vs. CSWC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Ares Capital Corporation (ARCC) and Capital Southwest Corporation (CSWC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ARCC | CSWC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.32 | ||
| Sortino ratioReturn per unit of downside risk | -1.86 | ||
| Omega ratioGain probability vs. loss probability | 0.93 | 1.15 | -0.22 |
| Calmar ratioReturn relative to maximum drawdown | -0.53 | 0.95 | -1.48 |
| Martin ratioReturn relative to average drawdown | -0.91 | 3.04 | -3.95 |
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Drawdowns
ARCC vs. CSWC - Drawdown Comparison
The maximum ARCC drawdown since its inception was -79.36%, which is greater than CSWC's maximum drawdown of -68.33%. Use the drawdown chart below to compare losses from any high point for ARCC and CSWC.
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Drawdown Indicators
| ARCC | CSWC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.36% | -68.33% | -11.03% |
Max Drawdown (1Y)Largest decline over 1 year | -18.86% | -15.75% | -3.11% |
Max Drawdown (3Y)Largest decline over 3 years | -19.35% | -27.74% | +8.39% |
Max Drawdown (5Y)Largest decline over 5 years | -21.76% | -33.66% | +11.90% |
Max Drawdown (10Y)Largest decline over 10 years | -56.77% | -61.15% | +4.38% |
Current DrawdownCurrent decline from peak | -10.03% | -1.81% | -8.22% |
Average DrawdownAverage peak-to-trough decline | -9.12% | -18.31% | +9.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 11.21% | 4.93% | +6.28% |
Volatility
ARCC vs. CSWC - Volatility Comparison
The current volatility for Ares Capital Corporation (ARCC) is 4.12%, while Capital Southwest Corporation (CSWC) has a volatility of 4.76%. This indicates that ARCC experiences smaller price fluctuations and is considered to be less risky than CSWC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARCC | CSWC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.12% | 4.76% | -0.64% |
Volatility (6M)Calculated over the trailing 6-month period | 14.85% | 13.36% | +1.49% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.90% | 19.01% | -0.11% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.99% | 22.21% | -2.22% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.58% | 27.42% | -1.84% |
Dividends
ARCC vs. CSWC - Dividend Comparison
ARCC's dividend yield for the trailing twelve months is around 10.12%, less than CSWC's 10.73% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | 10.12% | 9.49% | 8.77% | 9.59% | 10.12% | 7.65% | 9.47% | 9.01% | 9.88% | 9.67% | 9.22% | 11.02% |
CSWC Capital Southwest Corporation | 10.73% | 11.56% | 11.59% | 10.21% | 12.46% | 10.13% | 11.49% | 13.07% | 10.77% | 7.01% | 2.35% | 216.86% |
Financials
ARCC vs. CSWC - Financials Comparison
This section allows you to compare key financial metrics between Ares Capital Corporation and Capital Southwest Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
ARCC vs. CSWC - Profitability Comparison
ARCC - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, Ares Capital Corporation reported a gross profit of 550.00M and revenue of 763.00M. Therefore, the gross margin over that period was 72.1%.
CSWC - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, Capital Southwest Corporation reported a gross profit of 54.00M and revenue of 54.00M. Therefore, the gross margin over that period was 100.0%.
ARCC - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, Ares Capital Corporation reported an operating income of 404.00M and revenue of 763.00M, resulting in an operating margin of 53.0%.
CSWC - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, Capital Southwest Corporation reported an operating income of 44.66M and revenue of 54.00M, resulting in an operating margin of 82.7%.
ARCC - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Ares Capital Corporation reported a net income of 92.00M and revenue of 763.00M, resulting in a net margin of 12.1%.
CSWC - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Capital Southwest Corporation reported a net income of 27.48M and revenue of 54.00M, resulting in a net margin of 50.9%.
Frequently Asked Questions
ARCC and CSWC have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
CSWC has higher volatility (4.76%) compared to ARCC (4.12%). In terms of maximum drawdown, ARCC dropped -79.36% vs CSWC's -68.33%.
CSWC currently has the higher Sharpe Ratio (0.79 vs -0.53), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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