Comprehensive Stock Comparison
Compare Sirius XM Holdings Inc. (SIRI) vs Warner Music Group Corp. (WMG) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | WMG | 4.4% revenue growth vs SIRI's -1.6% |
| Value | SIRI | Lower P/E (7.0x vs 21.0x) |
| Quality / Margins | SIRI | 9.4% net margin vs WMG's 4.4% |
| Stability / Safety | WMG | Beta 0.59 vs SIRI's 0.87 |
| Dividends | SIRI | 4.7% yield, 2-year raise streak, vs WMG's 2.6% |
| Momentum (1Y) | SIRI | -4.8% vs WMG's -12.9% |
| Efficiency (ROA) | WMG | 3.0% ROA vs SIRI's 3.0%, ROIC 11.4% vs 6.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Sirius XM is a subscription-based satellite radio and audio entertainment company that broadcasts hundreds of music, sports, talk, and news channels across North America. It generates revenue primarily from monthly subscription fees — with automotive partnerships driving most new subscribers — supplemented by advertising on non-music channels and connected vehicle services. Its key moat is its exclusive satellite spectrum licenses and deep integration with automakers, giving it a captive audience in millions of vehicles where it's factory-installed.
Warner Music Group is one of the world's three major music companies that discovers, develops, and markets recording artists and their music. It generates revenue primarily from recorded music sales and streaming (about 85% of revenue) and music publishing royalties (about 15%), with income coming from physical sales, digital downloads, streaming platforms, and licensing music for films, TV, and advertising. Its competitive advantage lies in owning a massive, valuable catalog of iconic recordings and publishing rights—including works from artists like Madonna, Bruno Mars, and Ed Sheeran—which provides stable, recurring revenue and significant negotiating power with digital platforms.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
SIRI leads in 2 of 6 categories (Financial Metrics, Valuation Metrics). WMG leads in 2 (Profitability & Efficiency, Total Returns). 2 tied.
Financial Metrics (TTM)
SIRI and WMG operate at a comparable scale, with $8.6B and $6.9B in trailing revenue. Profitability is closely matched — net margins range from 9.4% (SIRI) to 4.4% (WMG). On growth, WMG holds the edge at +10.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | SIRISirius XM Holding… | WMGWarner Music Grou… |
|---|---|---|
| RevenueTrailing 12 months | $8.6B | $6.9B |
| EBITDAEarnings before interest/tax | $2.1B | $1.1B |
| Net IncomeAfter-tax profit | $805M | $305M |
| Free Cash FlowCash after capex | $1.2B | $572M |
| Gross MarginGross profit ÷ Revenue | +49.4% | +45.9% |
| Operating MarginEBIT ÷ Revenue | +17.2% | +11.2% |
| Net MarginNet income ÷ Revenue | +9.4% | +4.4% |
| FCF MarginFCF ÷ Revenue | +14.5% | +8.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +0.2% | +10.4% |
| EPS Growth (YoY)Latest quarter vs prior year | -65.0% | -24.4% |
Valuation Metrics
At 9.8x trailing earnings, SIRI trades at a 76% valuation discount to WMG's 40.9x P/E. On an enterprise value basis, SIRI's 6.8x EV/EBITDA is more attractive than WMG's 12.8x.
| Metric | SIRISirius XM Holding… | WMGWarner Music Grou… |
|---|---|---|
| Market CapShares × price | $7.4B | $10.7B |
| Enterprise ValueMkt cap + debt − cash | $17.0B | $14.8B |
| Trailing P/EPrice ÷ TTM EPS | 9.76x | 40.86x |
| Forward P/EPrice ÷ next-FY EPS est. | 6.96x | 21.00x |
| PEG RatioP/E ÷ EPS growth rate | 0.20x | — |
| EV / EBITDAEnterprise value multiple | 6.80x | 12.81x |
| Price / SalesMarket cap ÷ Revenue | 0.86x | 1.60x |
| Price / BookPrice ÷ Book value/share | 0.68x | 19.61x |
| Price / FCFMarket cap ÷ FCF | 5.91x | 19.92x |
Profitability & Efficiency
WMG delivers a 37.0% return on equity — every $100 of shareholder capital generates $37 in annual profit, vs $7 for SIRI. SIRI carries lower financial leverage with a 0.84x debt-to-equity ratio, signaling a more conservative balance sheet compared to WMG's 6.09x. On the Piotroski fundamental quality scale (0–9), SIRI scores 6/9 vs WMG's 3/9, reflecting solid financial health.
| Metric | SIRISirius XM Holding… | WMGWarner Music Grou… |
|---|---|---|
| ROE (TTM)Return on equity | +7.0% | +37.0% |
| ROA (TTM)Return on assets | +3.0% | +3.0% |
| ROICReturn on invested capital | +6.7% | +11.4% |
| ROCEReturn on capital employed | +7.9% | +12.8% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 3 |
| Debt / EquityFinancial leverage | 0.84x | 6.09x |
| Net DebtTotal debt minus cash | $9.6B | $4.1B |
| Cash & Equiv.Liquid assets | $94M | $532M |
| Total DebtShort + long-term debt | $9.7B | $4.6B |
| Interest CoverageEBIT ÷ Interest expense | 3.30x | 3.70x |
Total Returns (with DRIP)
A $10,000 investment in WMG five years ago would be worth $8,535 today (with dividends reinvested), compared to $4,864 for SIRI. Over the past 12 months, SIRI leads with a -4.8% total return vs WMG's -12.9%. The 3-year compound annual growth rate (CAGR) favors WMG at -0.9% vs SIRI's -17.0% — a key indicator of consistent wealth creation.
| Metric | SIRISirius XM Holding… | WMGWarner Music Grou… |
|---|---|---|
| YTD ReturnYear-to-date | +8.4% | -5.4% |
| 1-Year ReturnPast 12 months | -4.8% | -12.9% |
| 3-Year ReturnCumulative with dividends | -42.8% | -2.6% |
| 5-Year ReturnCumulative with dividends | -51.4% | -14.6% |
| 10-Year ReturnCumulative with dividends | -15.5% | +7.2% |
| CAGR (3Y)Annualised 3-year return | -17.0% | -0.9% |
Risk & Volatility
WMG is the less volatile stock with a 0.59 beta — it tends to amplify market swings less than SIRI's 0.87 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SIRI currently trades 86.6% from its 52-week high vs WMG's 81.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SIRISirius XM Holding… | WMGWarner Music Grou… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.87x | 0.59x |
| 52-Week HighHighest price in past year | $25.36 | $34.94 |
| 52-Week LowLowest price in past year | $18.69 | $25.56 |
| % of 52W HighCurrent price vs 52-week peak | +86.6% | +81.9% |
| RSI (14)Momentum oscillator 0–100 | 56.0 | 43.0 |
| Avg Volume (50D)Average daily shares traded | 4.6M | 1.9M |
Analyst Outlook
Wall Street rates SIRI as "Buy" and WMG as "Buy". Consensus price targets imply 27.6% upside for WMG (target: $37) vs 2.5% for SIRI (target: $23). For income investors, SIRI offers the higher dividend yield at 4.66% vs WMG's 2.58%.
| Metric | SIRISirius XM Holding… | WMGWarner Music Grou… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $22.50 | $36.50 |
| # AnalystsCovering analysts | 32 | 24 |
| Dividend YieldAnnual dividend ÷ price | +4.7% | +2.6% |
| Dividend StreakConsecutive years of raises | 2 | 4 |
| Dividend / ShareAnnual DPS | $1.02 | $0.74 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.8% | +0.1% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Jul 20 | Feb 26 | Change |
|---|---|---|---|
| Sirius XM Holdings … (SIRI) | 100 | 34.58 | -65.4% |
| Warner Music Group … (WMG) | 97.78 | 100.27 | +2.5% |
Warner Music Group … (WMG) returned -15% over 5 years vs Sirius XM Holdings … (SIRI)'s -51%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Sirius XM Holdings … (SIRI) | $5.0B | $8.6B | +70.6% |
| Warner Music Group … (WMG) | $3.2B | $6.7B | +106.6% |
Sirius XM Holdings Inc.'s revenue grew from $5.0B (2016) to $8.6B (2025) — a 6.1% CAGR. Warner Music Group Corp.'s revenue grew from $3.2B (2016) to $6.7B (2025) — a 8.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Sirius XM Holdings … (SIRI) | 14.9% | 9.4% | -36.7% |
| Warner Music Group … (WMG) | 0.8% | 5.4% | +606.6% |
Sirius XM Holdings Inc.'s net margin went from 15% (2016) to 9% (2025). Warner Music Group Corp.'s net margin went from 1% (2016) to 5% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Sirius XM Holdings … (SIRI) | 38.3 | 8.9 | -76.8% |
| Warner Music Group … (WMG) | 74.4 | 43.8 | -41.1% |
Sirius XM Holdings Inc. has traded in a 9x–212x P/E range over 8 years; current trailing P/E is ~10x. Warner Music Group Corp. has traded in a 33x–74x P/E range over 5 years; current trailing P/E is ~41x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Sirius XM Holdings … (SIRI) | 1.5 | 2.25 | +50.0% |
| Warner Music Group … (WMG) | 0.05 | 0.7 | +1305.6% |
Sirius XM Holdings Inc.'s EPS grew from $1.50 (2016) to $2.25 (2025) — a 5% CAGR. Warner Music Group Corp.'s EPS grew from $0.05 (2016) to $0.70 (2025) — a 34% CAGR.
Chart 6Free Cash Flow — 5 Years
Sirius XM Holdings Inc. generated $1B FCF in 2025 (-23% vs 2021). Warner Music Group Corp. generated $539M FCF in 2025 (+742% vs 2021).
SIRI vs WMG: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SIRI or WMG a better buy right now?
Sirius XM Holdings Inc. (SIRI) offers the better valuation at 9.8x trailing P/E (7.0x forward), making it the more compelling value choice. Analysts rate Sirius XM Holdings Inc. (SIRI) a "Buy" — based on 32 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — SIRI or WMG?
On trailing P/E, Sirius XM Holdings Inc. (SIRI) is the cheapest at 9.8x versus Warner Music Group Corp. at 40.9x. On forward P/E, Sirius XM Holdings Inc. is actually cheaper at 7.0x.
03Which is the better long-term investment — SIRI or WMG?
Over the past 5 years, Warner Music Group Corp. (WMG) delivered a total return of -14.6%, compared to -51.4% for Sirius XM Holdings Inc. (SIRI). A $10,000 investment in WMG five years ago would be worth approximately $9K today (assuming dividends reinvested). Over 10 years, the gap is even starker: WMG returned +7.2% versus SIRI's -15.5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — SIRI or WMG?
By beta (market sensitivity over 5 years), Warner Music Group Corp. (WMG) is the lower-risk stock at 0.59β versus Sirius XM Holdings Inc.'s 0.87β — meaning SIRI is approximately 46% more volatile than WMG relative to the S&P 500. On balance sheet safety, Sirius XM Holdings Inc. (SIRI) carries a lower debt/equity ratio of 84% versus 6% for Warner Music Group Corp. — giving it more financial flexibility in a downturn.
05Which has better profit margins — SIRI or WMG?
Sirius XM Holdings Inc. (SIRI) is the more profitable company, earning 9.4% net margin versus 5.4% for Warner Music Group Corp. — meaning it keeps 9.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SIRI leads at 22.3% versus 10.3% for WMG. At the gross margin level — before operating expenses — SIRI leads at 49.4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is SIRI or WMG more undervalued right now?
On forward earnings alone, Sirius XM Holdings Inc. (SIRI) trades at 7.0x forward P/E versus 21.0x for Warner Music Group Corp. — 14.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WMG: 27.6% to $36.50.
07Which pays a better dividend — SIRI or WMG?
All stocks in this comparison pay dividends. Sirius XM Holdings Inc. (SIRI) offers the highest yield at 4.7%, versus 2.6% for Warner Music Group Corp. (WMG).
08Is SIRI or WMG better for a retirement portfolio?
For long-horizon retirement investors, Warner Music Group Corp. (WMG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.59), 2.6% yield). Both have compounded well over 10 years (WMG: +7.2%, SIRI: -15.5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between SIRI and WMG?
Both stocks operate in the Communication Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: SIRI is a small-cap deep-value stock; WMG is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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- Sector: Communication Services
- Market Cap > $100B
- Net Margin > 5%
- Dividend Yield > 1.8%
- Sector: Communication Services
- Market Cap > $100B
- Revenue Growth > 5%
- Gross Margin > 27%