Best Stock to Buy Right Now: SiriusXM vs. Apple

Apple (NASDAQ: AAPL) and SiriusXM (NASDAQ: SIRI) aren't exactly peers. One is a technology behemoth with its hands in everything from artificial intelligence to smartphones and wearable tech. The other is solely betting on its streaming audio subscription services.

Sure, they both offer a music subscription service, but that's where the similarities end. So why compare the two? Because both stocks are getting a lot of attention from investors right now. It's worth taking a few minutes to size them up to see which one looks like the better buy today.

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What's happening with SiriusXM right now?

One of the most compelling angles for investing in SiriusXM is its dominance in satellite radio, specifically its vehicle-based music subscriptions. The company had 33 million subscribers at the end of 2024. That's a sizable customer base, but unfortunately, it has stagnated over the past few years.

At the end of 2021, SiriusXM had 32 million subscribers, which means it only added 1 million subscribers in four years. Most importantly, self-pay subscribers dropped from 34 million last year to their current level of 33 million.

That's not a great sign for the company. Music streaming is a competitive space, and with Apple and Spotify gobbling up most of the market, SiriusXM's retreating subscriber numbers should be troubling to potential investors. SiriusXM also brings in advertising revenue, but it was essentially flat from 2023 to 2024, at $1.8 billion.

While we're focusing on SiriusXM's not-so-great news, the company's total sales decreased by 4% in 2024 to $6.6 billion, and average revenue per user fell by $0.35 to $15.21.

What's happening with Apple right now?

In Apple's most recently reported quarter, about 56% of its revenue came from iPhone sales, but it still has a far more diversified business than SiriusXM, and its efforts to further diversify its sales are making progress. For example, just five years ago, about 14% of its revenue came from its services; now, services account for 21%.

There's been some uncertainty about how well Apple can grow in an increasingly competitive tech landscape, especially with such an intense focus on AI opportunities. So far, Apple is weathering all of this adequately. It partnered with OpenAI to offload more complex requests that Siri can't handle to ChatGPT, and also introduced its own AI offering, Apple Intelligence, on its devices.

Apple is also consistently growing. The company reported $124.3 billion in sales in its fiscal 2025 first quarter, (which ended Dec. 28), up 4% from the year-ago quarter, and diluted earnings per share jumped 10% to $2.40.

The less-than-impressive news from the quarter was that iPhone sales were stagnant compared to the year-ago quarter, and that sales in China, Taiwan, and Hong Kong were down 11%. The Trump administration's 10% tariffs on Chinese exports could also impact Apple, as a substantial share of its devices are manufactured in that country.

SiriusXM is cheaper, but Apple is the better stock

There's a lot of excitement around SiriusXM right now for a couple of reasons. First, Warren Buffett's Berkshire Hathaway recently added more SiriusXM to its portfolio. Anything Berkshire Hathaway invests in is worth at least some consideration.

Plus, SiriusXM stock is cheap, trading at a forward price-to-earnings ratio of just 7.8.

However, SiriusXM is facing an uphill battle in the music subscription space. Its subscriber numbers seem to have peaked and are now slowly retreating. How slow that fall will be or how long it can maintain its numbers is anyone's guess. But the trajectory doesn't look great.

I'd much rather invest in a company with diversified revenue streams that continues to introduce new products and services to generate new sales. Apple may have its work cut out for itself as it tries to reinvigorate iPhone sales and weather a trade war. But at least it holds entrenched positions in services, smartphones, and wearables that give it more long-term opportunities.

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Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Spotify Technology. The Motley Fool has a disclosure policy.