Best Stock to Buy Right Now: Sirius XM vs. GoPro

• Before making an concern decision, you should recognize a company's business.

• Sirius XM consists of 2 chiseled businesses: its namesake part and Pandora.

• GoPro is known for its sports-oriented cameras, but it present faces superior competition. .

• 10 stocks we similar amended than Sirius XM ›

It's constructive to comparison companies to spot which 1 makes a amended semipermanent investment. Of course, your hazard tolerance besides plays a role. When examining a banal investment, it's important to retrieve that you're taking portion ownership successful a company. Hence, you should recognize its underlying fundamentals.

It's clip to instrumentality a deeper look astatine Sirius XM (NASDAQ: SIRI) and GoPro (NASDAQ: GPRO) to find which 1 offers amended concern prospects.

Sirius XM really consists of 2 businesses. There's its namesake division, and past there's its Pandora platform.

The Sirius XM conception offers a scope of content, specified arsenic music, sports, comedy, and talk, connected outer radio. It generates astir of its gross via subscription fees. Its Pandora conception operates a music, comedy, and podcast streaming level that allows listeners to personalize the experience. This concern produces astir of its gross from advertising.

Both businesses look stiff competition, including escaped vigor and different amusement venues specified arsenic video streaming services. They've struggled with increasing revenue. The Sirius XM conception saw self-paying subscribers proceed to fall. There were 31.2 cardinal arsenic of Sept. 30, down from 31.5 cardinal a twelvemonth ago. That helped propulsion third-quarter gross down 1% to $1.6 billion.

Its smaller Pandora part experienced a tepid 1% year-over-year summation successful gross to $548 million. Advertising gross accrued 2% to $416 million, but that was owed to higher podcast and exertion fees. With Pandora raising prices connected its subscriptions and losing 184,000 subscribers implicit the past twelvemonth to 5.7 million, advertizing fees whitethorn travel nether pressure. Across each services, Pandora had 41.6 cardinal monthly progressive users, down 2.2 cardinal from a twelvemonth ago.

GoPro has go known for its cameras that users deterioration connected their heads, capturing videos of radical doing assorted activities. It besides sells camera mounts, accessories, and cogwheel (like bags and backpacks). The company's products had the "cool" factor, but competitors person enactment aggravated unit connected GoPro's revenue. This includes smartphones' amended video functionality.

GoPro's third-quarter gross plummeted 37% twelvemonth implicit twelvemonth to $163 million. It sold astir 500,000 camera units, 18% less than a twelvemonth ago. Management has been pushing subscriptions, which would supply a much predictable gross stream. However, subscription gross fell 3% to $27 million.