Sirius XM (SIRI 0.94%) might be receiving a lot of attention simply because it's a top holding in Berkshire Hathaway's massive public equities portfolio. The satellite radio operator has some favorable qualities, but there are reasons to be bearish.
Nike (NKE 0.64%) owns one of the world's most recognizable brands. It's a leader in the sportswear market. However, the management team there is in the middle of a difficult turnaround.
Between these two consumer stocks, which presents the better buying opportunity today?
Image source: Nike.
Sirius XM is cheap, but growth is hard to come by
NASDAQ: SIRI
Key Data Points
Sirius XM should drive interest from value investors. That's because the stock is cheap, trading at a forward price-to-earnings ratio of 6.7. That low valuation isn't surprising when you consider the stock price has tanked 66% in the past five years (as of Jan. 21).
The market isn't pleased with Sirius XM's lack of growth. The company reported a year-over-year decline in revenue in the third quarter 2025, propelled by a paid subscriber base that keeps shrinking. It doesn't help that consumers flock to popular streaming services offered by major technology firms.
There are reasons to be optimistic. Sirius XM's business model leans heavily toward recurring subscription sales, as opposed to ad revenue that can be cyclical. Its free cash flow is projected to grow by 22% between 2025 and 2027. And it pays a sizable dividend yield of 5.36%.
Nike's powerful brand gives it a key advantage in a competitive industry
NYSE: NKE
Key Data Points
In recent years, Nike has struggled to drive excitement from consumers when it comes to product innovation. It's also trying to recalibrate its distribution strategy, focusing on building robust relationships with wholesale accounts. And the business wants to bring athletes and sports back to the center of its strategy.
Nike's sales rose by just 1% in the fiscal 2026 second quarter (ended Nov. 30, 2025), leading to a troubling 32% decline in net income. But CEO Elliott Hill exudes confidence, saying on the latest earnings call, "We're in the middle innings of our comeback."
Competition is always stiff in the global sportswear industry. And fashion in general is a hard market to crack, as consumer tastes and preferences shift. Nike deserves the benefit of the doubt, though. Its brand has stood the test of time. And it resonates strongly with people around the world.
Which stock is the winner?
For investors looking to hold a stock for the next five years, I think Nike is the better business to buy. It's incredibly difficult to recommend owning a company that is on the wrong side of technological innovation, which is precisely what Sirius XM has been experiencing.
This isn't to say that Nike is a surefire winner, but it has the necessary plan in place, as well as the brand strength, to be successful in the long run.
