Sirius XM (NASDAQ: SIRI) and Pandora Media (NYSE:P) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
Risk & Volatility
Sirius XM has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Pandora Media has a beta of -0.59, meaning that its share price is 159% less volatile than the S&P 500.
Valuation & Earnings
This table compares Sirius XM and Pandora Media’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sirius XM||$5.43 billion||5.70||$647.90 million||$0.20||34.45|
|Pandora Media||$1.47 billion||1.29||-$518.39 million||($1.24)||-5.98|
Sirius XM has higher revenue and earnings than Pandora Media. Pandora Media is trading at a lower price-to-earnings ratio than Sirius XM, indicating that it is currently the more affordable of the two stocks.
Sirius XM pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Pandora Media does not pay a dividend. Sirius XM pays out 20.0% of its earnings in the form of a dividend.
Institutional & Insider Ownership
19.4% of Sirius XM shares are held by institutional investors. 0.8% of Sirius XM shares are held by company insiders. Comparatively, 2.6% of Pandora Media shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Sirius XM and Pandora Media’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for Sirius XM and Pandora Media, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sirius XM presently has a consensus target price of $6.22, indicating a potential downside of 9.76%. Pandora Media has a consensus target price of $8.66, indicating a potential upside of 16.85%. Given Pandora Media’s higher possible upside, analysts plainly believe Pandora Media is more favorable than Sirius XM.
Sirius XM beats Pandora Media on 12 of the 17 factors compared between the two stocks.
Sirius XM Company Profile
Sirius XM Holdings Inc. provides satellite radio services in the United States. The company broadcasts music plus sports, entertainment, comedy, talk, news, traffic, and weather programs, including various music genres ranging from rock, pop and hip-hop to country, dance, jazz, Latin, and classical; live play-by-play sports from principal leagues and colleges; multitude of talk and entertainment channels for various audiences; national, international, and financial news; and limited run channels. It also streams music and non-music channels over the Internet; and offers applications to allow consumers to access its Internet radio service on smartphones, tablets, computers, home devices, and other consumer electronic equipment. In addition, the company distributes satellite radios through the sale and lease of new vehicles; and acquires subscribers through the sale and lease of previously owned vehicles with factory-installed satellite radios. Its satellite radio systems include satellites, terrestrial repeaters, and other satellite facilities; studios; and radios. Further, the company provides satellite television services, which offer music channels on the DISH NETWORK satellite television service as a programming package; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedule and scores, and movie listings; real-time traffic services; and real-time weather services. Additionally, it offers location-based services through two-way wireless connectivity, including safety, security, convenience, maintenance and data services, remote vehicles diagnostics, and stolen or parked vehicle locator services. The company also sells satellite radios directly to consumers through its Website, as well as through automakers and retailers. The company was founded in 1990 and is headquartered in New York, New York. Sirius XM Holdings Inc. is a subsidiary of Liberty Media Corporation.
Pandora Media Company Profile
Pandora Media, Inc. provides music discovery platform services in the United States and internationally. The company offers streaming radio and on-demand music services, which enable the listeners to create personalized stations and playlists, as well as search and play songs and albums on-demand. It also provides Pandora?Ad-Supported Radio Service, an ad-supported service that allows listeners to access a catalog of music, comedy, livestreams, and podcasts through its personalized playlist generating system for free across its various delivery platforms, as well as Premium Access, a service to listeners to access on-demand listening experience; and Pandora Plus, a subscription radio service, which also includes replays, additional skipping of songs, offline listening, higher quality audio on supported devices, and longer timeout-free listening. In addition, the company offers Pandora Premium, an on-demand subscription service that provides users the ability to search, play, and collect songs and albums; build playlists on their own or with the tap of a button; listen to curated playlists; and share playlists on social networks. Pandora Media, Inc. was founded in 2000 and is headquartered in Oakland, California.
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