Seek Returns logo

NBIS vs. TME: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at NBIS and TME, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

NBIS is a standard domestic listing, while TME trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolNBISTME
Company Name--Tencent Music Entertainment Group
CountryNetherlandsChina
GICS SectorInformation TechnologyCommunication Services
GICS IndustrySoftwareEntertainment
Market Capitalization22.11 billion USD31.79 billion USD
ExchangeNasdaqGSNYSE
Listing DateOctober 21, 2024December 12, 2018
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of NBIS and TME by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

NBIS vs. TME: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolNBISTME
5-Day Price Return-24.02%-8.92%
13-Week Price Return16.64%-25.91%
26-Week Price Return136.86%11.24%
52-Week Price Return349.87%74.84%
Month-to-Date Return-36.14%-15.32%
Year-to-Date Return201.59%66.52%
10-Day Avg. Volume26.03M9.03M
3-Month Avg. Volume17.62M5.98M
3-Month Volatility122.91%35.72%
Beta0.710.48

Profitability

Return on Equity (TTM)

NBIS

5.82%

Software Industry

Max
65.88%
Q3
22.54%
Median
10.46%
Q1
-6.54%
Min
-41.05%

NBIS’s Return on Equity of 5.82% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

TME

10.55%

Entertainment Industry

Max
41.86%
Q3
22.17%
Median
13.67%
Q1
4.55%
Min
-17.95%

TME’s Return on Equity of 10.55% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.

NBIS vs. TME: A comparison of their Return on Equity (TTM) against their respective Software and Entertainment industry benchmarks.

Net Profit Margin (TTM)

NBIS

-55.23%

Software Industry

Max
53.50%
Q3
20.30%
Median
9.60%
Q1
-4.98%
Min
-41.00%

NBIS has a negative Net Profit Margin of -55.23%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

TME

34.08%

Entertainment Industry

Max
45.33%
Q3
29.05%
Median
15.14%
Q1
4.44%
Min
-21.70%

A Net Profit Margin of 34.08% places TME in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.

NBIS vs. TME: A comparison of their Net Profit Margin (TTM) against their respective Software and Entertainment industry benchmarks.

Operating Profit Margin (TTM)

NBIS

-36.56%

Software Industry

Max
61.99%
Q3
23.67%
Median
10.93%
Q1
-3.57%
Min
-40.19%

NBIS has a negative Operating Profit Margin of -36.56%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

TME

28.82%

Entertainment Industry

Max
43.42%
Q3
28.90%
Median
18.77%
Q1
9.11%
Min
-4.88%

TME’s Operating Profit Margin of 28.82% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

NBIS vs. TME: A comparison of their Operating Profit Margin (TTM) against their respective Software and Entertainment industry benchmarks.

Profitability at a Glance

SymbolNBISTME
Return on Equity (TTM)5.82%10.55%
Return on Assets (TTM)3.93%7.89%
Net Profit Margin (TTM)-55.23%34.08%
Operating Profit Margin (TTM)-36.56%28.82%
Gross Profit Margin (TTM)4.01%43.90%

Financial Strength

Current Ratio (MRQ)

NBIS

6.57

Software Industry

Max
4.01
Q3
2.27
Median
1.50
Q1
1.03
Min
0.25

NBIS’s Current Ratio of 6.57 is exceptionally high, placing it well outside the typical range for the Software industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

TME

2.09

Entertainment Industry

Max
6.76
Q3
4.06
Median
1.58
Q1
0.87
Min
0.38

TME’s Current Ratio of 2.09 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

NBIS vs. TME: A comparison of their Current Ratio (MRQ) against their respective Software and Entertainment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

NBIS

0.85

Software Industry

Max
2.04
Q3
0.86
Median
0.29
Q1
0.00
Min
0.00

NBIS’s Debt-to-Equity Ratio of 0.85 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

TME

0.09

Entertainment Industry

Max
1.54
Q3
0.80
Median
0.15
Q1
0.01
Min
0.00

TME’s Debt-to-Equity Ratio of 0.09 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

NBIS vs. TME: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Entertainment industry benchmarks.

Interest Coverage Ratio (TTM)

NBIS

-43.66

Software Industry

Max
89.65
Q3
33.82
Median
1.59
Q1
-10.48
Min
-71.23

NBIS has a negative Interest Coverage Ratio of -43.66. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

TME

--

Entertainment Industry

Max
62.11
Q3
35.59
Median
7.06
Q1
1.13
Min
-44.74

Interest Coverage Ratio data for TME is currently unavailable.

NBIS vs. TME: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Financial Strength at a Glance

SymbolNBISTME
Current Ratio (MRQ)6.572.09
Quick Ratio (MRQ)6.531.86
Debt-to-Equity Ratio (MRQ)0.850.09
Interest Coverage Ratio (TTM)-43.66--

Growth

Revenue Growth

NBIS vs. TME: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

NBIS vs. TME: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

NBIS

0.00%

Software Industry

Max
0.34%
Q3
0.17%
Median
0.00%
Q1
0.00%
Min
0.00%

NBIS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

TME

0.00%

Entertainment Industry

Max
2.71%
Q3
1.23%
Median
0.60%
Q1
0.00%
Min
0.00%

TME currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

NBIS vs. TME: A comparison of their Dividend Yield (TTM) against their respective Software and Entertainment industry benchmarks.

Dividend Payout Ratio (TTM)

NBIS

0.00%

Software Industry

Max
12.76%
Q3
6.56%
Median
0.00%
Q1
0.00%
Min
0.00%

NBIS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

TME

0.00%

Entertainment Industry

Max
82.30%
Q3
37.50%
Median
24.18%
Q1
0.00%
Min
0.00%

TME has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

NBIS vs. TME: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Dividend at a Glance

SymbolNBISTME
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

NBIS

95.37

Software Industry

Max
142.78
Q3
72.24
Median
36.21
Q1
24.24
Min
4.55

A P/E Ratio of 95.37 places NBIS in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

TME

17.66

Entertainment Industry

Max
80.06
Q3
53.00
Median
28.44
Q1
18.00
Min
2.61

In the lower quartile for the Entertainment industry, TME’s P/E Ratio of 17.66 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

NBIS vs. TME: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Price-to-Sales Ratio (TTM)

NBIS

17.90

Software Industry

Max
20.79
Q3
12.71
Median
6.75
Q1
4.56
Min
0.87

NBIS’s P/S Ratio of 17.90 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

TME

6.02

Entertainment Industry

Max
10.86
Q3
6.98
Median
4.25
Q1
2.56
Min
0.51

TME’s P/S Ratio of 6.02 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

NBIS vs. TME: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Price-to-Book Ratio (MRQ)

NBIS

5.86

Software Industry

Max
30.49
Q3
14.84
Median
8.09
Q1
4.32
Min
0.38

NBIS’s P/B Ratio of 5.86 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

TME

2.04

Entertainment Industry

Max
19.63
Q3
10.35
Median
5.18
Q1
2.07
Min
0.59

TME’s P/B Ratio of 2.04 is in the lower quartile for the Entertainment industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

NBIS vs. TME: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Entertainment industry benchmarks.

Valuation at a Glance

SymbolNBISTME
Price-to-Earnings Ratio (TTM)95.3717.66
Price-to-Sales Ratio (TTM)17.906.02
Price-to-Book Ratio (MRQ)5.862.04
Price-to-Free Cash Flow Ratio (TTM)0.4318.50