NFLX vs. TME: Netflix vs. Tencent Music Entertainment Stock Comparison
How do Netflix (NFLX) and Tencent Music Entertainment (TME) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Netflix (NFLX) and Tencent Music Entertainment (TME) are both classified in the Movies & Entertainment sub-industry within the broader Entertainment industry, placing them in the closest GICS peer bucket.
Netflix (NFLX) trades as ordinary local shares, while Tencent Music Entertainment (TME) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.
| Profile Item | NFLX | TME |
|---|---|---|
| Name | Netflix Inc. | Tencent Music Entertainment Group ADR |
| Country/Region | United States | China |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry Group | Media & Entertainment | Media & Entertainment |
| GICS Industry | Entertainment | Entertainment |
| GICS Sub-Industry | Movies & Entertainment | Movies & Entertainment |
| Market Capitalization | 260.38 billion USD | 15.58 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | May 23, 2002 | December 12, 2018 |
| Security Type | Common Stock | ADR |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | NFLX | TME |
|---|---|---|
| Total Return (1Y) | -42.22% | -55.15% |
| Total Return (3Y, Annualized) | 13.59% | 9.39% |
| Total Return (5Y, Annualized) | -0.56% | 4.17% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | NFLX | TME |
|---|---|---|
| Volatility (1Y, Annualized) | 36.32% | 47.08% |
| Beta (5Y) | 1.58 | 0.70 |
| Max Drawdown (5Y) | -75.95% | -69.85% |
| Avg. Volume (3M) | 36.31M | 8.07M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | NFLX | TME |
|---|---|---|
| Sharpe Ratio (1Y) | -1.28 | -1.26 |
| Sortino Ratio (1Y) | -1.74 | -1.50 |
Profitability
ROE (TTM)
Netflix (NFLX) at 53.46% clears its industry range for ROE, a sharper capital-efficiency signal than Tencent Music Entertainment (TME) at 10.97%, which is closer to a typical peer reading.
NFLX
Media & Entertainment industry group
53.46%
- NFLX
- 53.46%
- Max
- 49.92%
- Q3
- 17.95%
- Median
- 7.20%
- Q1
- -4.53%
- Min
- -26.31%
TME
Media & Entertainment industry group
10.97%
- Max
- 49.92%
- Q3
- 17.95%
- TME
- 10.97%
- Median
- 7.20%
- Q1
- -4.53%
- Min
- -26.31%
Net Margin (TTM)
For every dollar of sales, both Netflix (NFLX) at 29.69% and Tencent Music Entertainment (TME) at 26.28% retain more as net profit than most peers, landing in the top net margin quartile of their industries.
NFLX
Media & Entertainment industry group
29.69%
- Max
- 32.91%
- NFLX
- 29.69%
- Q3
- 11.75%
- Median
- 5.04%
- Q1
- -4.17%
- Min
- -25.14%
TME
Media & Entertainment industry group
26.28%
- Max
- 32.91%
- TME
- 26.28%
- Q3
- 11.75%
- Median
- 5.04%
- Q1
- -4.17%
- Min
- -25.14%
Operating Margin (TTM)
Both Netflix (NFLX) at 34.63% and Tencent Music Entertainment (TME) at 29.18% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.
NFLX
Media & Entertainment industry group
34.63%
- Max
- 40.16%
- NFLX
- 34.63%
- Q3
- 18.72%
- Median
- 8.63%
- Q1
- 1.90%
- Min
- -22.08%
TME
Media & Entertainment industry group
29.18%
- Max
- 40.16%
- TME
- 29.18%
- Q3
- 18.72%
- Median
- 8.63%
- Q1
- 1.90%
- Min
- -22.08%
Profitability Metrics
| Metric | NFLX | TME |
|---|---|---|
| ROE (TTM) | 53.46% | 10.97% |
| ROA (TTM) | 17.12% | 5.60% |
| Net Margin (TTM) | 29.69% | 26.28% |
| Operating Margin (TTM) | 34.63% | 29.18% |
| Gross Margin (TTM) | 50.69% | 44.32% |
Growth
Revenue Growth
Both Netflix (NFLX) at 15.85% and Tencent Music Entertainment (TME) at 15.85% sit in the top peer quartile for revenue growth, so each is growing its top line faster than typical industry peers.
EPS Growth
Tencent Music Entertainment (TME) at 67.92% sits in the top EPS growth quartile, while Netflix (NFLX) at 27.58% is closer to the peer norm — faster per-share earnings growth for TME.
Growth Metrics
| Metric | NFLX | TME |
|---|---|---|
| Revenue Growth (YoY) | 15.85% | 15.85% |
| Revenue Growth (3Y CAGR) | 12.64% | 5.10% |
| EPS Growth (YoY) | 27.58% | 67.92% |
| EPS Growth (3Y CAGR) | 36.49% | 46.17% |
Financial Strength
Current Ratio (MRQ)
Both Netflix (NFLX) at 1.08 and Tencent Music Entertainment (TME) at 1.75 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.
NFLX
Media & Entertainment industry group
1.08
- Max
- 4.69
- Q3
- 2.53
- Median
- 1.52
- NFLX
- 1.08
- Q1
- 0.95
- Min
- 0.28
TME
Media & Entertainment industry group
1.75
- Max
- 4.69
- Q3
- 2.53
- TME
- 1.75
- Median
- 1.52
- Q1
- 0.95
- Min
- 0.28
Debt / Equity (MRQ)
Both Netflix (NFLX) at 0.60 and Tencent Music Entertainment (TME) at 0.21 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
NFLX
Media & Entertainment industry group
0.60
- Max
- 3.65
- Q3
- 1.69
- NFLX
- 0.60
- Median
- 0.46
- Q1
- 0.17
- Min
- 0.00
TME
Media & Entertainment industry group
0.21
- Max
- 3.65
- Q3
- 1.69
- Median
- 0.46
- TME
- 0.21
- Q1
- 0.17
- Min
- 0.00
Financial Strength Metrics
| Metric | NFLX | TME |
|---|---|---|
| Current Ratio (MRQ) | 1.08 | 1.75 |
| Debt / Equity (MRQ) | 0.60 | 0.21 |
| Net Debt / EBITDA | 0.58 | -1.22 |
Dividends
Dividend Yield (TTM)
Netflix (NFLX) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Tencent Music Entertainment (TME) reports a yield of 17.77%, ranking against industry peers normally.
NFLX
Media & Entertainment industry group
0.00%
- Max
- 1.33%
- Q3
- 0.65%
- NFLX
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TME
Media & Entertainment industry group
17.77%
- TME
- 17.77%
- Max
- 1.33%
- Q3
- 0.65%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Netflix (NFLX) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Tencent Music Entertainment (TME) reports a payout of 29.65%, ranking against industry peers normally.
NFLX
Media & Entertainment industry group
0.00%
- Max
- 71.43%
- Q3
- 28.98%
- NFLX
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TME
Media & Entertainment industry group
29.65%
- Max
- 71.43%
- TME
- 29.65%
- Q3
- 28.98%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | NFLX | TME |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 17.77% |
| Dividend Payout Ratio (TTM) | 0.00% | 29.65% |
Valuation
P/E Ratio (TTM)
Both Netflix (NFLX) at 18.33 and Tencent Music Entertainment (TME) at 11.66 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
NFLX
Media & Entertainment industry group
18.33
- Max
- 51.21
- Q3
- 28.90
- NFLX
- 18.33
- Median
- 17.98
- Q1
- 11.53
- Min
- 1.64
TME
Media & Entertainment industry group
11.66
- Max
- 51.21
- Q3
- 28.90
- Median
- 17.98
- TME
- 11.66
- Q1
- 11.53
- Min
- 1.64
P/S Ratio (TTM)
Tencent Music Entertainment (TME) at 0.46 looks cheap on sales in the lower P/S ratio quartile, while Netflix (NFLX) at 5.24 looks rich in the upper quartile — a clear gap in price per dollar of revenue.
NFLX
Media & Entertainment industry group
5.24
- Max
- 7.43
- NFLX
- 5.24
- Q3
- 3.82
- Median
- 1.40
- Q1
- 0.70
- Min
- 0.00
TME
Media & Entertainment industry group
0.46
- Max
- 7.43
- Q3
- 3.82
- Median
- 1.40
- Q1
- 0.70
- TME
- 0.46
- Min
- 0.00
P/B Ratio (MRQ)
Tencent Music Entertainment (TME) at 1.35 is valued about in line with its industry on P/B ratio, while Netflix (NFLX) at 8.89 carries an above-peer premium to book — NFLX is pricier on assets.
NFLX
Media & Entertainment industry group
8.89
- Max
- 11.45
- NFLX
- 8.89
- Q3
- 5.30
- Median
- 1.84
- Q1
- 0.77
- Min
- -2.61
TME
Media & Entertainment industry group
1.35
- Max
- 11.45
- Q3
- 5.30
- Median
- 1.84
- TME
- 1.35
- Q1
- 0.77
- Min
- -2.61
Valuation Metrics
| Metric | NFLX | TME |
|---|---|---|
| P/E Ratio (TTM) | 18.33 | 11.66 |
| P/S Ratio (TTM) | 5.24 | 0.46 |
| P/B Ratio (MRQ) | 8.89 | 1.35 |
| Free Cash Flow Yield (TTM) | 9.78% | 45.80% |