Sirius XM and Pandora. Both are showing increases in usage but which is the better stock for you?
Two companies that have already revolutionized how consumers listen to music: Sirius XM and Pandora. Both are showing increases in usage but which is the better stock for you?
The much older Sirius XM now has 25 million subscribers, adding 715,000 net new subscribers in the last quarter. That’s significantly larger than the 453,000 they gained the quarter before. For the year, the satellite radio company – virtually, the only one there is – expects 1.5 million new subscribers.
Then there’s upstart Pandora. They announced yesterday that their 71.1 million listeners – 30% more than last year – tuned in for a total 1.25 billion hours.
Meanwhile, it’s not just the battle between the two companies for listeners – it’s also for investors. Sirius XM is worth nearly $23 billion while Pandora is just $3.4 billion. But while Sirius XM is up 15% so far this year, it’s much smaller rival Pandora is up over 116%.
However, like everything else in life, things aren’t so simple. These are two very volatile stocks.
Pandora went public two years ago this month at $20 per share, near where it’s trading now. However, it hasn’t been smooth sailing. In November, its price was as low as $7.18. Meanwhile, Sirius XM was worth 17 times its current price in 2000 before collapsing just three years later.
Which is the better buy?
We ask CNBC contributor Zachary Karabell, president of River Twice Research, and Talking Numbers contributor Enis Taner, Global Macro Editor at RiskReversal.com, which stock you should own.
To hear their picks, watch the video above.