Sirius XM (NASDAQ:SIRI) and Entercom Communications (NYSE:ETM) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.
Analyst Ratings
This is a breakdown of current ratings and target prices for Sirius XM and Entercom Communications, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Sirius XM | 1 | 1 | 9 | 0 | 2.73 |
| Entercom Communications | 0 | 2 | 2 | 0 | 2.50 |
Sirius XM presently has a consensus target price of $7.1136, indicating a potential upside of 20.77%. Entercom Communications has a consensus target price of $3.8333, indicating a potential downside of 23.64%. Given Sirius XM's stronger consensus rating and higher possible upside, equities research analysts clearly believe Sirius XM is more favorable than Entercom Communications.
Earnings & Valuation
This table compares Sirius XM and Entercom Communications' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Sirius XM | $7.79 billion | 3.13 | $914 million | $0.20 | 29.45 |
| Entercom Communications | $1.49 billion | 0.46 | $-420,210,000.00 | $1.00 | 5.02 |
Sirius XM has higher revenue and earnings than Entercom Communications. Entercom Communications is trading at a lower price-to-earnings ratio than Sirius XM, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Sirius XM has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Entercom Communications has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.
Profitability
This table compares Sirius XM and Entercom Communications' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Sirius XM | 13.28% | -137.30% | 9.29% |
| Entercom Communications | -49.10% | -3.14% | -0.73% |
Institutional & Insider Ownership
15.7% of Sirius XM shares are held by institutional investors. Comparatively, 46.4% of Entercom Communications shares are held by institutional investors. 0.9% of Sirius XM shares are held by company insiders. Comparatively, 16.4% of Entercom Communications shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Sirius XM beats Entercom Communications on 9 of the 14 factors compared between the two stocks.
