Critical Survey: Sirius XM (NASDAQ:SIRI) versus fuboTV (NYSE:FUBO)

fuboTV (NYSE:FUBO) and Sirius XM (NASDAQ:SIRI) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for fuboTV and Sirius XM, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
fuboTV	1	1	5	2	2.89
Sirius XM	3	3	4	0	2.10

fuboTV presently has a consensus target price of $17.33, indicating a potential upside of 25.83%. Sirius XM has a consensus target price of $27.70, indicating a potential upside of 1.76%. Given fuboTV’s stronger consensus rating and higher probable upside, research analysts plainly believe fuboTV is more favorable than Sirius XM.

Profitability

This table compares fuboTV and Sirius XM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
fuboTV	5.72%	-9.67%	-1.83%
Sirius XM	9.86%	9.19%	3.89%

Earnings and Valuation

This table compares fuboTV and Sirius XM”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
fuboTV	$377.20 million	1.07	-$18.87 million	$5.40	2.55
Sirius XM	$8.56 billion	1.07	$805.00 million	$2.24	12.15

Sirius XM has higher revenue and earnings than fuboTV. fuboTV 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

fuboTV has a beta of 2.5, suggesting that its stock price is 150% more volatile than the S&P 500. Comparatively, Sirius XM has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Insider & Institutional Ownership

39.3% of fuboTV shares are held by institutional investors. Comparatively, 10.7% of Sirius XM shares are held by institutional investors. 74.3% of fuboTV 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

fuboTV beats Sirius XM on 9 of the 15 factors compared between the two stocks.

About fuboTV

fuboTV, Inc. engages in providing subscription to sports, news, and entertainment content. It offers its services through streaming devices and on television, mobile phones, tablets, and computers. The company was founded by David Gandler, Alberto Horihuela Suarez, and Sung Ho Choi on February 20, 2009 and is headquartered in New York, NY.

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.