Sirius XM Holdings Inc. (SIRI) vs Warner Music Group Corp. (WMG)

Sirius XM Holdings Inc. and Warner Music Group Corp. are both Entertainment companies. Warner Music Group Corp. is the larger, with a market value of $14.3B against $8.9B — 1.6× the size. Sirius XM Holdings Inc. trades at the lower P/E: 9.9× against 21.2×. Warner Music Group Corp. grew revenue faster over the last twelve months: 12.9% against 0.44%. Sirius XM Holdings Inc. has the higher net margin (10.2% vs 9.20%) and the lower return on invested capital (4.85% vs 12.4%). Both pay a dividend; Sirius XM Holdings Inc. yields more (2.20% vs 1.51%). Across the 23 metrics below, Sirius XM Holdings Inc. leads on 16 and Warner Music Group Corp. on 7.

Valuation

Metric SIRI WMG Entertainment median
P/E 9.91 21.20 22.03
P/S 1.01 1.94 1.47
P/B 0.73 14.86 2.00
Price to free cash flow 5.63 16.94 16.60
EV/EBITDA 7.88 12.91 9.65
EV/Sales 2.09 2.50 1.76
Earnings yield 10.09% 4.72% (0.67%)
Free cash flow yield 17.77% 5.90% 3.26%

Profitability

Metric SIRI WMG Entertainment median
Gross margin 52.19% 45.77% 45.02%
Operating margin 19.12% 13.69% 2.30%
Net margin 10.23% 9.20% 0.00%
Free cash flow margin 18.01% 11.45% 1.56%
Return on equity 7.57% 76.15% 0.00%
Return on assets 3.23% 6.55% 0.00%
Return on invested capital 4.85% 12.39% 0.00%

Growth

Metric SIRI WMG Entertainment median
Revenue growth (TTM) 0.44% 12.91% 5.07%
EPS growth (last fiscal year) 136.32% (16.87%) —
Revenue growth, 5-year CAGR 1.26% 8.49% 10.25%
Net income growth, 5-year CAGR 43.78% 0.00% 0.00%

Health

Metric SIRI WMG Entertainment median
Debt to equity 0.79 4.94 0.46
Current ratio 0.46 0.73 0.86
Net debt to EBITDA 4.67 3.58 0.72

Dividend

Metric SIRI WMG Entertainment median
Dividend yield 2.20% 1.51% 1.16%
Payout ratio 0.32 0.78 0.00

Size

Metric SIRI WMG Entertainment median
Market cap 8.90b 14.28b 1.87b

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