MediaCo (NASDAQ:MDIA – Get Free Report) and Sirius XM (NASDAQ:SIRI – Get Free Report) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.
Profitability
This table compares MediaCo and Sirius XM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MediaCo | N/A | N/A | N/A |
| Sirius XM | 10.23% | 9.37% | 4.02% |
Earnings and Valuation
This table compares MediaCo and Sirius XM”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MediaCo | $139.42 million | 0.67 | -$69.74 million | ($0.83) | -1.34 |
| Sirius XM | $8.56 billion | 1.02 | $805.00 million | $2.50 | 10.32 |
Sirius XM has higher revenue and earnings than MediaCo. MediaCo is trading at a lower price-to-earnings ratio than Sirius XM, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for MediaCo and Sirius XM, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MediaCo | 1 | 0 | 0 | 0 | 1.00 |
| Sirius XM | 3 | 7 | 9 | 0 | 2.32 |
Sirius XM has a consensus price target of $32.15, suggesting a potential upside of 24.66%. Given Sirius XM’s stronger consensus rating and higher possible upside, analysts plainly believe Sirius XM is more favorable than MediaCo.
Insider & Institutional Ownership
64.0% of MediaCo shares are held by institutional investors. Comparatively, 10.7% of Sirius XM shares are held by institutional investors. 9.8% of MediaCo shares are held by insiders. Comparatively, 3.3% of Sirius XM shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
MediaCo has a beta of -0.05, indicating that its share price is 105% less 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.
Summary
Sirius XM beats MediaCo on 12 of the 14 factors compared between the two stocks.
About MediaCo
MediaCo Holding Inc. owns and operates radio stations in the United States. The company engages in the operation of WQHT-FM and WBLS-FM radio stations in the New York City area. It also offers digital advertising, and events, which includes sponsorships, ticket sales, licensing, and syndication services. MediaCo Holding Inc. was incorporated in 2019 and is headquartered in New York, New York.
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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