In today's quarter-final matchup of The Motley Fool Better-Buy Tournament, Prospect Capital squares off against Sirius XM in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each other as they make the case for their stocks, with the winner determined by you, the readers.
Motley Fool Financials analyst David Hanson believes Prospect Capital (NASDAQ:PSEC) should move on to the next round thanks to a largest investment portfolio that has excellent credit quality. Prospect Capital's BDC structure allows it to pass earnings through to shareholders which results in a big dividend yield. Finally, David sees Prospect's large size and scale as a big advantage when it comes to finding new investments and getting favorable prices.
With the recent breaking news of John Malone dropping his bid for Sirius XM (NASDAQ:SIRI), long-term shareholders have reason to cheer: this lucrative business will continue to monopolize the satellite radio space and shareholders can participate directly. At 25 million paid subscribers and growing, Sirius should continue to leverage its massive user base to drive increased profit. With $0.17 of every sales dollar flowing through as free cash and the ability to determine its own destiny, Motley Fool analyst Michael Finarelli believes Sirius is a great way to gain exposure in this cash-rich market.
Watch these analysts square off in the video below and then vote for a winner. Then check out the other companies in the Motley Fool Better-Buy Bracket.
This year's winning stock?
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Cast your vote in the poll below the video!
David Hanson has no position in any stocks mentioned. Michael Finarelli has no position in any stocks mentioned. The Motley Fool owns shares of Sirius XM Radio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.