Better Stock Today Challenge: Sirius XM vs. Tesla Motors

In the spirit of World Cup competition, we’re holding our own tournament in search of the Better Stock Today.

Jun 17, 2014 at 1:40PM

In the spirit of World Cup competition, we're holding our own tournament in search of the better stock today. We're pitting 32 companies against each other and you, the reader, will determine the winner.

Sirius XM (NASDAQ:SIRI) takes on Tesla Motors (NASDAQ:TSLA) for this first round-robin match in our search for the better stock today.

Consumer goods analyst Mike Finarelli believes Sirius XM Radio should take the crown for one simple reason: a veritable franchise that includes exclusive content like the Howard Stern show and programming from ESPN Radio. Higher-quality content affords Sirius the ability to raise subscription prices, offsetting costs as well as increasing profit. While the company has continued to grow in the face of Internet radio, there's still plenty more growth ahead when you consider existing subscribers are only a fraction of all cars on the road. All of this points to more cash flow accelerating through the business for the benefit of shareholders. 

Motley Fool Supernova analyst Matt Argersinger thinks Tesla Motors deserves to win this match for one simple reason: Elon Musk. The Chief Executive Officer and co-founder is the brainchild behind many technology and business success stories, most notably PayPal. Musk is also the CEO and Chief Rocket Designer of SpaceX and the Chairman of SolarCity.

At Tesla, Musk not only created the first commercially successful all-electric vehicle in the Model S, but also one of the automotive industry's highest-rated vehicles ever. And as if being a technological genius and a proven value creator weren't enough, Musk also happens to be Tesla's largest individual shareholder, owning 23% of its outstanding shares worth roughly $6 billion.

Some of the greatest business and investment success stories of our time are derived from visionary founders and CEOs with large personal stakes in their own company. That reason alone should be enough to make Tesla a market-beating investment from today's price.

Warren Buffett vs. His Worst Nightmare 
Warren Buffett just called this emerging technology a "real threat" to his biggest cash-cow. While Buffett shakes in his billionaire-boots, only a few investors are embracing this new market which experts say will be worth over $2 trillion. It won't be long before everyone on Wall Street wises up, that's why The Motley Fool is releasing this timely investor alert. Click here to learn more about what's keeping Buffett up at night and the one public company we're calling the "brains behind" the technology.

Vote here to determine the winner of this match and sound off in the comments. Check back to Fool.com to see who advances in the tournament.

Matthew Argersinger has no position in any stocks mentioned. Michael Finarelli has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Sirius XM Radio and Tesla Motors. 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.

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Feb 1, 2016 at 4:54PM

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