Critical Review: Urban One (UONE) and Sirius XM (SIRI)

Urban One (NASDAQ:UONE) and Sirius XM (NASDAQ:SIRI) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Dividends

Sirius XM pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Urban One does not pay a dividend. Sirius XM pays out 20.0% of its earnings in the form of a dividend.

Risk and Volatility

Urban One has a beta of -0.68, indicating that its share price is 168% less volatile than the S&P 500. Comparatively, Sirius XM has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Earnings & Valuation

This table compares Urban One 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
Urban One $440.04 million 0.28 $111.88 million N/A N/A
Sirius XM $5.43 billion 5.14 $647.90 million $0.20 31.05

Sirius XM has higher revenue and earnings than Urban One.

Insider & Institutional Ownership

0.3% of Urban One shares are held by institutional investors. Comparatively, 18.6% of Sirius XM shares are held by institutional investors. 78.3% of Urban One shares are held by company insiders. Comparatively, 0.8% 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Urban One 33.45% 104.20% 2.66%
Sirius XM 15.64% -78.49% 13.79%

Analyst Ratings

This is a summary of recent ratings for Urban One and Sirius XM, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Urban One 0 0 0 0 N/A
Sirius XM 4 6 4 0 2.00

Sirius XM has a consensus target price of $6.84, indicating a potential upside of 10.13%. Given Sirius XM’s higher probable upside, analysts plainly believe Sirius XM is more favorable than Urban One.

Summary

Sirius XM beats Urban One on 10 of the 14 factors compared between the two stocks.

About Urban One

Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Reach Media, Digital, and Cable Television. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of December 31, 2017, it owned and/or operated 56 broadcast stations located in 15 urban markets. The Reach Media segment operates operate radio stations, including the Tom Joyner Morning Show; and other syndicated programming assets, including the Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show, as well as Get Up! Mornings with Erica Campbell. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website; and operates other event related activities. The Digital segment is involved in online business, including the operation of Interactive One, an online platform serving the African-American community through social content, news, information, and entertainment Websites, including Cassius, Bossip, HipHopWired, and MadameNoire digital platforms and brands. The Cable Television segment operates TV One, an African-American targeted cable television network. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.

About Sirius XM

Sirius XM Holdings Inc. provides satellite radio services in the United States. The company broadcasts music plus sports, entertainment, comedy, talk, news, traffic, and weather programs, including various music genres ranging from rock, pop and hip-hop to country, dance, jazz, Latin, and classical; live play-by-play sports from principal leagues and colleges; multitude of talk and entertainment channels for various audiences; national, international, and financial news; and limited run channels. It also streams music and non-music channels over the Internet; and offers applications to allow consumers to access its Internet radio service on smartphones, tablets, computers, home devices, and other consumer electronic equipment. In addition, the company distributes satellite radios through the sale and lease of new vehicles; and acquires subscribers through the sale and lease of previously owned vehicles with factory-installed satellite radios. Its satellite radio systems include satellites, terrestrial repeaters, and other satellite facilities; studios; and radios. Further, the company provides satellite television services, which offer 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; real-time traffic services; and real-time weather services. Additionally, it offers location-based services through two-way wireless connectivity, including safety, security, convenience, maintenance and data services, remote vehicles diagnostics, and stolen or parked vehicle locator services. The company also sells satellite radios directly to consumers through its Website, as well as through automakers and retailers. The company was founded in 1990 and is headquartered in New York, New York. Sirius XM Holdings Inc. is a subsidiary of Liberty Media Corporation.

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