Roku (NASDAQ:ROKU – Get Free Report) and Sirius XM (NASDAQ:SIRI – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Volatility and Risk
Roku has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500. Comparatively, Sirius XM has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Earnings & Valuation
This table compares Roku and Sirius XM”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Roku | $4.11 billion | 3.65 | -$129.39 million | ($0.42) | -242.33 |
| Sirius XM | $8.70 billion | 0.89 | -$1.67 billion | ($6.75) | -3.43 |
Roku has higher earnings, but lower revenue than Sirius XM. Roku is trading at a lower price-to-earnings ratio than Sirius XM, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Roku and Sirius XM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Roku | -1.40% | -2.44% | -1.44% |
| Sirius XM | -26.41% | 3.73% | 1.51% |
Analyst Ratings
This is a breakdown of current ratings and price targets for Roku and Sirius XM, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Roku | 1 | 7 | 17 | 2 | 2.74 |
| Sirius XM | 5 | 3 | 4 | 1 | 2.08 |
Roku currently has a consensus target price of $101.33, suggesting a potential downside of 0.44%. Sirius XM has a consensus target price of $26.18, suggesting a potential upside of 13.24%. Given Sirius XM’s higher possible upside, analysts clearly believe Sirius XM is more favorable than Roku.
Institutional & Insider Ownership
86.3% of Roku shares are owned by institutional investors. Comparatively, 10.7% of Sirius XM shares are owned by institutional investors. 14.0% of Roku shares are owned by company insiders. Comparatively, 3.3% of Sirius XM shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Roku beats Sirius XM on 10 of the 15 factors compared between the two stocks.
About Roku
Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls. The Devices segment provides sale of streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories as well as licensing arrangements with service operators. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.
About Sirius XM
Sirius XM Holdings Inc. operates as an audio entertainment company in North America. It operates in two segments, Sirius XM, and Pandora and Off-platform. The company’s Sirius XM segment provides music, sports, entertainment, comedy, talk, news, traffic and weather channels, and other content, as well as podcast and infotainment services on subscription fee basis; and live, curated, and exclusive and on demand programming services through satellite radio systems and streamed through applications for mobile and home devices, and other consumer electronic equipment. This segment also distributes satellite radios through automakers and retailers, as well as its website; podcasts, including true crime, news, politics, music, comedy, sports, and entertainment; and offers location-based services through two-way wireless connectivity, including safety, security, convenience, maintenance and data, remote vehicles diagnostic, and stolen or parked vehicle locator services. In addition, this segment provides 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; graphic information related to road closings, traffic flow, and incident data for consumers with in-vehicle navigation systems; real-time weather services in vehicles, boats, and planes; and music programming and commercial-free music services for office, restaurants, and other business. Its Pandora and Off-platform segment operates music, comedy, and podcast streaming platform, which offers personalized experience for listener through computers, tablets, mobile devices, vehicle speakers, and connected devices; and provides advertising services. The company was incorporated in 2013 and is headquartered in New York.
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