Baseline has a neat little feature called their 100 Smartest Companies. It's put together using a formulaic method applied to figure out the value of each employee at a company, to calculate what they call the Knowledge Value per Employee. That is, the value created by each worker, on average, from chief executive to middle manager to entry-level staffer.

And out of these 100 Smartest Companies, both SIRIUS and XM are in the top 20. SIRIUS Satellite Radio actually is on the Top 10, coming in at #8 - while XM Satellite Radio ranks at #12.

Baseline explains how the Knowledge Value per Employee is created... and it's flaws:

First, subtract the company's shareholder equity from its market capitalization. Then divide that amount by the number of employees at the company. The result is an intangible but vital asset: the value each employee generates.

Granted, relying on the stock market to judge a company's smartness has its problems. There will be cases when investors bid up the price of shares beyond any hopes of realizing good returns—say, during times of "irrational exuberance."

So, the formula isn't perfect.

Some might argue that both XMSR and SIRI stock are driven by"irrational exuberance" but regardless, it's a neat metric to look at, and it's even more impressive to see both SIRIUS and XM coming in as high as they are.

[The Smart 100 Rankings]

Thanks Mike!