Entravision Communications (NYSE:EVC – Get Free Report) and Sirius XM (NASDAQ:SIRI – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.
Dividends
Entravision Communications pays an annual dividend of $0.20 per share and has a dividend yield of 7.4%. Sirius XM pays an annual dividend of $1.08 per share and has a dividend yield of 5.1%. Entravision Communications pays out -15.4% of its earnings in the form of a dividend. Sirius XM pays out 38.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sirius XM has raised its dividend for 7 consecutive years. Entravision Communications is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Entravision Communications has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Sirius XM has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Entravision Communications | 1 | 0 | 0 | 0 | 1.00 |
| Sirius XM | 3 | 3 | 3 | 1 | 2.20 |
Sirius XM has a consensus target price of $24.29, suggesting a potential upside of 15.70%. Given Sirius XM’s stronger consensus rating and higher probable upside, analysts plainly believe Sirius XM is more favorable than Entravision Communications.
Valuation & Earnings
This table compares Entravision Communications and Sirius XM”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Entravision Communications | $420.18 million | 0.59 | -$148.91 million | ($1.30) | -2.09 |
| Sirius XM | $8.90 billion | 0.79 | -$1.67 billion | $2.83 | 7.42 |
Entravision Communications has higher earnings, but lower revenue than Sirius XM. Entravision 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.
Insider & Institutional Ownership
69.5% of Entravision Communications shares are held by institutional investors. Comparatively, 10.7% of Sirius XM shares are held by institutional investors. 8.3% of Entravision Communications shares are held by company insiders. Comparatively, 3.3% of Sirius XM shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Entravision Communications and Sirius XM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Entravision Communications | -30.16% | -51.15% | -14.52% |
| Sirius XM | -26.41% | 3.73% | 1.51% |
Summary
Sirius XM beats Entravision Communications on 11 of the 18 factors compared between the two stocks.
About Entravision Communications
Entravision Communications Corporation operates as an advertising solutions, media, and technology company worldwide. The company operates through three segments: Digital, Television, and Audio. It reaches and engages Hispanics in the United States. The company's portfolio encompasses integrated end-to-end advertising solutions, including digital, television, and audio properties. It also offers a suite of end-to-end digital advertising solutions, including digital commercial partnerships services; and Smadex, a programmatic ad purchasing platform that enables advertisers to purchase advertising electronically and manage data-driven advertising campaigns through online marketplaces. In addition, the company provides a mobile growth solution, such as managed services to advertisers to reach mobile device users; and digital advertising solutions for advertisers. Further, it owns and operates TelevisaUnivision-affiliated television stations. The company operates various television stations; radio stations; and Spanish-language radio stations. Entravision Communications Corporation was founded in 1996 and is headquartered in Santa Monica, 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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