Gaia (NASDAQ:GAIA – Get Free Report) and Sirius XM (NASDAQ:SIRI – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Volatility & Risk
Gaia has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Sirius XM has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.
Profitability
This table compares Gaia and Sirius XM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gaia | -4.87% | -4.80% | -3.22% |
| Sirius XM | 9.41% | 8.93% | 3.73% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gaia | 1 | 0 | 1 | 0 | 2.00 |
| Sirius XM | 3 | 4 | 3 | 0 | 2.00 |
Gaia presently has a consensus target price of $9.00, indicating a potential upside of 180.37%. Sirius XM has a consensus target price of $24.44, indicating a potential upside of 16.07%. Given Gaia’s higher possible upside, analysts plainly believe Gaia is more favorable than Sirius XM.
Insider & Institutional Ownership
40.5% of Gaia shares are held by institutional investors. Comparatively, 10.7% of Sirius XM shares are held by institutional investors. 28.6% of Gaia shares are held by insiders. Comparatively, 0.8% of Sirius XM shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Gaia and Sirius XM”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gaia | $90.36 million | 0.89 | -$5.23 million | ($0.19) | -16.89 |
| Sirius XM | $8.56 billion | 0.82 | $805.00 million | $2.24 | 9.40 |
Sirius XM has higher revenue and earnings than Gaia. Gaia is trading at a lower price-to-earnings ratio than Sirius XM, indicating that it is currently the more affordable of the two stocks.
Summary
Sirius XM beats Gaia on 8 of the 13 factors compared between the two stocks.
About Gaia
Gaia, Inc. operates a digital video subscription service and online community for underserved member base in the United States, Canada, Australia, and internationally. The company has a digital content library with various titles in Spanish, German, and French languages available to its subscribers on internet connected devices. Its network includes Yoga channel, which provides access to streaming yoga, Eastern arts, and other movement based classes; Transformation channel that offers content in the areas of spiritual growth, personal development, and expanded consciousness; Alternative Healing channel, which features content focused on food and nutrition, holistic healing, alternative and integrative medicines, and longevity; and Seeking Truth channel that provides access to interviews and presentations in the ancient wisdom and metaphysics genre. The company was formerly known as Gaiam, Inc. and changed its name to Gaia, Inc. in July 2016. Gaia, Inc. was incorporated in 1988 and is headquartered in Louisville, Colorado.
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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