This is an interesting comparison given that Sirius XM Holdings (SIRI -5.65%) and Ford Motor Company (F -0.65%) operate in close ties with each other, largely because Sirius XM's business success is tightly intertwined with automakers like Ford.
But when it comes to which of these two companies makes a better buy right now, the decision may not be as close as you would think.
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Sirius XM: A one-of-a-kind business that's struggling to grow
Sirius XM is in many ways a unicorn in the audio entertainment space. Unlike streaming giants that battle over subscribers and advertising, it enjoys a unique position with virtually no direct competitors. Its main rival? Traditional AM/FM radio.
And yet, despite that strategic advantage, the company is struggling to maintain any meaningful growth.
Its second-quarter earnings paint a rough picture. Revenue came in at $2.14 billion, a slight dip from $2.18 billion in the same quarter a year ago. But what's more concerning is the sharp 32.5% decline in net income, which fell to $205 million, while diluted earnings per share dropped from $0.74 to $0.57 year over year.
That's not a one-off, either. The first quarter also saw declines in both the top and bottom lines. Taken together, total revenue for the first half of the year is down 3.08%, at $4.2 billion.
For a company with little direct competition, this stagnation is puzzling. One possible explanation is the limited expansion potential in Sirius XM's core business model. The company is heavily reliant on new car sales and driver subscriptions, and the simple fact may be that there is a direct limit on the number of people who want to pay for it.
Ford: A cyclical giant navigating tough terrain
Ford isn't without its own set of challenges. The company enjoyed a strong rebound in 2022, with revenue climbing 15.93% that year, helped by pent-up demand following pandemic disruptions. But since then, maintaining that momentum has proved more difficult.
Still, Ford's performance in recent quarters has remained comparatively stable. In the second quarter, total revenue reached $50.18 billion, up from 2024's $47.81 billion. Net income shifted from profit to a loss of $29 million, a significant decline from last year's net income of $1.8 billion.
Despite these losses, which could be attributed to how much Ford has invested in new areas such as electric vehicles (EVs), its key advantage over Sirius XM is its diversified product line and strength of brand loyalty. Unlike satellite radio, drivers do need vehicles, and Ford's long-term potential as a strong dividend source and its easy valuation give it an edge as an investment.
While the EV market is in flux and competition remains fierce, Ford is positioning itself to be a long-term player in the space. Its iconic F-Series trucks and Mustang Mach-E continue to gain traction, even as consumers grapple with inflation and high interest rates.
The investor takeaway
Both of these stocks offer nice dividends; the share-price performance is a different story. Ford shares have gained 62% over the last five years, while SiriusXM has seen its share price fall 61%.
Ford has more momentum; Sirius is struggling to find top-line growth. The automaker managed to grow through the first half of 2025, gaining revenue momentum in the second quarter, and is putting money back into its business through expansion of its EV production, which is why I can forgive the slip in earnings.
Sirius XM could make a comeback if it successfully pivots into new content or digital offerings, or if the spending power of the public improves. But given the current pricing pressures on consumers, premium things like satellite radio subscriptions likely won't gain a lot of traction.
Ford, while not a high-growth tech stock, offers a more stable outlook and a clearer road map over the long term. It might not be the flashiest stock on the market, but its dividend seems safe given its huge cash reserve of more than $23 billion, its future growth through EV innovation, and continued global demand for its core vehicles like the F-150.
All in all, Ford seems like the better stock to buy right now. Sirius XM's niche dominance is offset by stagnation and declining earnings. Ford has proved that it can weather economic headwinds over the long term, even if it sacrifices earnings in the short term while investing in the future and offering a compelling dividend yield in the process. If you're looking for a stock with more upside and greater resilience, Ford drives away with the win.
