We recently compiled a list of the 6 Undervalued Entertainment Stocks To Buy Right Now. In this article, we are going to take a look at where Sirius XM Holdings Inc. (NASDAQ:SIRI) stands against the other undervalued entertainment stocks.

Entertainment stocks provide interesting investment opportunities. Unlike many other businesses, these companies allow the retail investor to have some association with the company that makes them feel a part of it. For example, Disney was a big part of many people's childhood. Owning the company's stock is often a way for them to not only honor the company but also feel a part of the company rather than just a viewer of its content.

At the same time, these stocks can also be prone to ups and downs, largely dependent on how the public perceives the content they make. If the content is loved, the company makes money and the stock goes up. If it doesn't receive a good response from the public, the company can't make enough money, resulting in a stock price decline. Regulatory risks, innovative technologies, and high production costs continue to plague the sector. However, these issues often bring the stock down to levels where investors would love to take a position in the stock.

We look at 6 such companies that are trading at a low valuation and are a steal at these levels. To come up with our list of 6 undervalued entertainment stocks, we considered stocks with a price-to-book value of below 3.0 and a market cap between $5 billion and $30 billion.

A close-up of a hand, counting the money from the subscription fees of the Entertainment Communication Services company.

Sirius XM Holdings Inc. (NASDAQ:SIRI)

Sirius XM Holdings Inc. is a broadcasting company that provides audio entertainment services to subscribers. The company operates through Pandora & Off-platform and Sirius XM segments. It provides music, comedy talk, news, on-demand programming services, and other services. The stock trades at a price-to-book value of 0.69 and is extremely undervalued, though not without risks. These risks include expensive acquisitions as well as trying to stay relevant at a time when fewer and fewer people are using radios.

The biggest thing that the stock has going for it is that Warren Buffett continues to build a position in the stock. He now owns over 34% of the company! Investors who take a position in this undervalued stock do so because of the confidence that Buffett’s stake gives them. This isn’t necessarily a great strategy. However, the company is making efforts to improve its fundamentals, and the general consensus is that with Buffett’s backing, the company will be able to pull it off despite the risks.

Overall SIRI ranks 2nd on our list of the undervalued entertainment stocks to buy right now. While we acknowledge the potential of SIRI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as SIRI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

 

Disclosure: None. This article was originally published at Insider Monkey.