Sirius XM Holdings Inc. (SIRI) vs Sphere Entertainment Co. (SPHR)

Sirius XM Holdings Inc. and Sphere Entertainment Co. are both Entertainment companies. Sirius XM Holdings Inc. is the larger, with a market value of $8.9B against $5.0B — 1.8× the size. Sphere Entertainment Co. has negative trailing earnings, so its P/E is not meaningful; Sirius XM Holdings Inc. trades at 9.9×. Sphere Entertainment Co. grew revenue faster over the last twelve months: 27.5% against 0.44%. Sirius XM Holdings Inc. has the higher net margin (10.2% vs −5.66%) and the higher return on invested capital (4.85% vs −3.93%). Across the 21 metrics below, Sirius XM Holdings Inc. leads on 15 and Sphere Entertainment Co. on 6.

Valuation

Metric SIRI SPHR Entertainment median
P/E 9.91 n/m 22.03
P/S 1.01 3.76 1.47
P/B 0.73 2.29 2.00
Price to free cash flow 5.63 14.21 16.60
EV/EBITDA 7.88 23.55 9.65
EV/Sales 2.09 3.93 1.76
Earnings yield 10.09% (1.62%) (0.67%)
Free cash flow yield 17.77% 7.04% 3.26%

Profitability

Metric SIRI SPHR Entertainment median
Gross margin 52.19% 54.23% 45.02%
Operating margin 19.12% (11.41%) 2.30%
Net margin 10.23% (5.66%) 0.00%
Free cash flow margin 18.01% 26.46% 1.56%
Return on equity 7.57% (3.38%) 0.00%
Return on assets 3.23% (1.87%) 0.00%
Return on invested capital 4.85% (3.93%) 0.00%

Growth

Metric SIRI SPHR Entertainment median
Revenue growth (TTM) 0.44% 27.46% 5.07%
EPS growth (last fiscal year) 136.32% 113.02% —
Revenue growth, 5-year CAGR 1.26% (3.21%) 10.25%
Net income growth, 5-year CAGR 43.78% (28.74%) 0.00%

Health

Metric SIRI SPHR Entertainment median
Debt to equity 0.79 0.35 0.46
Current ratio 0.46 1.22 0.86
Net debt to EBITDA 4.67 2.25 0.72

Dividend

Metric SIRI SPHR Entertainment median
Dividend yield 2.20% — 1.16%
Payout ratio 0.32 0.00 0.00

Size

Metric SIRI SPHR Entertainment median
Market cap 8.90b 4.97b 1.87b

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