Contrasting Bilibili (NASDAQ:BILI) and Sirius XM (NASDAQ:SIRI)

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

Volatility & Risk

Sirius XM has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Bilibili has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Insider and Institutional Ownership

10.7% of Sirius XM shares are owned by institutional investors. Comparatively, 16.1% of Bilibili shares are owned by institutional investors. 0.8% of Sirius XM shares are owned by company insiders. Comparatively, 22.2% of Bilibili shares are owned 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.

Valuation & Earnings

This table compares Sirius XM and Bilibili”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sirius XM	$8.90 billion	0.83	-$1.67 billion	$2.83	7.75
Bilibili	$3.68 billion	2.88	-$184.51 million	$0.25	101.48

Bilibili has lower revenue, but higher earnings than Sirius XM. Sirius XM is trading at a lower price-to-earnings ratio than Bilibili, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sirius XM	11.61%	8.79%	3.62%
Bilibili	2.60%	6.99%	2.78%

Analyst Ratings

This is a summary of recent ratings and price targets for Sirius XM and Bilibili, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sirius XM	3	3	3	1	2.20
Bilibili	0	4	6	1	2.73

Sirius XM currently has a consensus target price of $24.29, indicating a potential upside of 10.79%. Bilibili has a consensus target price of $29.61, indicating a potential upside of 16.73%. Given Bilibili’s stronger consensus rating and higher probable upside, analysts plainly believe Bilibili is more favorable than Sirius XM.

Summary

Bilibili beats Sirius XM on 8 of the 14 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 Bilibili

Bilibili Inc. provides online entertainment services for the young generations in the People's Republic of China. It offers a range of digital content, including professional user generated videos, mobile games, and value-added services, such as live broadcasting, occupationally generated videos, audio drama on Maoer, and comics on Bilibili Comic. The company also provides advertising services; and IP derivatives and other services. In addition, it engages in the business and technology development activities; e-commerce business; and video, comics, and game distribution activities. Bilibili Inc. was founded in 2009 and is headquartered in Shanghai, the People's Republic of China.