Townsquare Media (NYSE: TSQ) and Sirius XM (NASDAQ:SIRI) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.
This is a breakdown of recent ratings and price targets for Townsquare Media and Sirius XM, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Risk and Volatility
Townsquare Media has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Sirius XM has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.
Earnings & Valuation
This table compares Townsquare Media and Sirius XM’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Townsquare Media||$507.43 million||0.28||-$10.27 million||$0.74||10.47|
|Sirius XM||$5.43 billion||5.18||$647.90 million||$0.20||31.30|
Sirius XM has higher revenue and earnings than Townsquare Media. Townsquare 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.
This table compares Townsquare Media and Sirius XM’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Townsquare Media pays an annual dividend of $0.30 per share and has a dividend yield of 3.9%. Sirius XM pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Townsquare Media pays out 40.5% of its earnings in the form of a dividend. Sirius XM pays out 20.0% 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.
Institutional and Insider Ownership
49.3% of Townsquare Media shares are held by institutional investors. Comparatively, 20.0% of Sirius XM shares are held by institutional investors. 25.7% of Townsquare Media shares are held by company insiders. Comparatively, 1.1% of Sirius XM shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
About Townsquare Media
Townsquare Media, Inc. is a media, entertainment and digital marketing solutions company principally focused on small and mid-sized markets across the United States. The Company operates through two segments: Local Advertising and Live Events. The Company’s Local Advertising segment offers broadcast, digital and mobile advertising within its local markets. The Company’s Live Events segment consists of a range of live events, which the Company creates, promotes and produces, including music concerts, multi-day music festivals, fairs, consumer expositions and trade shows, athletic events, lifestyle events and other forms of entertainment. The Company reports the remainder of its business in its Other Media and Entertainment category, which principally provides digital marketing solutions, e-commerce solutions and digital advertising services nationally. The Company’s assets include radio stations, live events, and digital, mobile, video and social media properties.
About Sirius XM
Sirius XM Radio Inc. broadcasts its music, sports, entertainment, comedy, talk, news, traffic and weather channels in the United States on a subscription fee basis through its two satellite radio systems. Subscribers can also receive certain of its music and other channels over the Internet, including through applications for mobile devices. As of December 31, 2011, it had 21,892,824 subscribers. Its subscribers include subscribers under its regular and discounted pricing plans; subscribers that have prepaid, including payments made or due from automakers for subscriptions included in the sale or lease price of a vehicle; radios activated for daily rental fleet programs, and subscribers to its Internet services who do not also have satellite radio subscriptions. In January 2013, Liberty Media Corporation announced it held 50.7% interest of the Company.
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