Sirius XM (NASDAQ:SIRI – Get Free Report) and Gray Media (NYSE:GTN.A – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.
Insider and Institutional Ownership
10.7% of Sirius XM shares are held by institutional investors. Comparatively, 0.3% of Gray Media shares are held by institutional investors. 3.3% of Sirius XM shares are held by insiders. Comparatively, 13.3% of Gray Media shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and price targets for Sirius XM and Gray Media, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sirius XM | 3 | 4 | 4 | 0 | 2.09 |
| Gray Media | 0 | 0 | 0 | 0 | 0.00 |
Earnings & Valuation
This table compares Sirius XM and Gray Media”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sirius XM | $8.56 billion | 1.21 | $805.00 million | $2.37 | 12.96 |
| Gray Media | $3.10 billion | 0.25 | -$85.00 million | ($1.53) | -4.90 |
Sirius XM has higher revenue and earnings than Gray Media. Gray Media is trading at a lower price-to-earnings ratio than Sirius XM, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Sirius XM has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Gray Media has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
Profitability
This table compares Sirius XM and Gray Media’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sirius XM | 9.86% | 9.19% | 3.89% |
| Gray Media | -3.12% | -3.07% | -0.64% |
Dividends
Sirius XM pays an annual dividend of $1.08 per share and has a dividend yield of 3.5%. Gray Media pays an annual dividend of $0.32 per share and has a dividend yield of 4.3%. Sirius XM pays out 45.6% of its earnings in the form of a dividend. Gray Media pays out -20.9% 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 increased its dividend for 7 consecutive years. Gray Media is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Sirius XM beats Gray Media on 14 of the 17 factors compared between the two stocks.
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.
About Gray Media
Gray Television, Inc., a television broadcast company, owns and operates television stations and digital assets in the United States. As of February 28, 2019, it owned and operated television stations in 91 television markets broadcasting approximately 400 program streams, including approximately 150 channels affiliated with the CBS Network, the NBC Network, the ABC Network, and the FOX Network. The company also broadcasts secondary digital channels affiliated to ABC, CBS, and FOX, as well as channels affiliated with various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, This TV Network, Antenna TV, Telemundo, Cozi, Heroes and Icons, and MOVIES! Network; and local news/weather channels in various markets. In addition, it is also involved in the video program production, marketing, and digital businesses including Raycom Sports, Tupelo-Raycom, and RTM Studios; and production of PowerNation programs and content. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.
Receive News & Ratings for Sirius XM Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sirius XM and related companies with MarketBeat.com's FREE daily email newsletter.
