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

• Sirius XM generates important subscription revenue, but it's facing aggravated contention from streaming platforms.

• Lululemon's marque commands pricing power, and the institution has meaningful maturation imaginable successful China.

• Sirius XM and Lululemon commercialized astatine inexpensive valuations, but the amended concern accidental is clear.

• 10 stocks we similar amended than Lululemon Athletica Inc. ›

Sirius XM (NASDAQ: SIRI) has gotten a batch of attraction this year. That's chiefly due to the fact that Warren Buffett-led Berkshire Hathaway is simply a ample investor, owning 37% of the outer vigor operator's outstanding shares. But the banal has been wildly disappointing, down 66% successful the past 3 years (as of Dec. 3).

Then there's Lululemon Athletica (NASDAQ: LULU). The person successful athleisure apparel was a high-flying banal not excessively agelong ago. However, it's besides nether pressure, and shares commercialized 64% beneath their peak.

Investors are looking astatine immoderate imaginable buy-the-dip opportunities here. Which of these stocks is the amended 1 to bargain close now? The reply is arsenic wide arsenic day.

When the Oracle of Omaha's conglomerate has a involvement successful a business, it's typically a bully thought for the mean capitalist to instrumentality a person look. For what it's worth, though, investors mightiness lone find 1 evident crushed to similar Sirius XM. And that's the valuation. The shares are ungraded inexpensive close now. Investors tin scoop up the banal astatine a bargain forward price-to-earnings (P/E) ratio of 6.9.

Consequently, the dividend besides looks appealing. The existent dividend output of 5.09% provides a bully income watercourse for investors who admit that benignant of thing.

I judge that's wherever the bullish statement comes to an end. Sirius XM appears to beryllium a dying business, oregon astatine slightest 1 that's connected the incorrect broadside of technological change. Popular streaming platforms are each the rage, and they supply a amended lawsuit value proposition.

And portion the institution generated 75% of its gross successful Q3 from subscriptions, the Sirius XM self-pay subscriber basal has declined successful 8 of the past 11 quarters. Revenue besides fell past quarter. That's decidedly not an encouraging sign.

Like Sirius XM, Lululemon shares besides commercialized astatine a debased valuation. The existent guardant P/E aggregate of 13.6 is 38% cheaper than the wide S&P 500. And it's a wide denotation of however overmuch the marketplace has soured connected the athleisure pioneer.

Lululemon surely deed a unsmooth patch. Competition successful this manufacture is ever fierce, requiring the enactment squad to perpetually innovate with caller products to thrust lawsuit excitement. CEO Calvin McDonald admitted that Lululemon hasn't been the champion lately successful this regard.