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NTES vs. SPOT: NetEase vs. Spotify Technology Stock Comparison

This page compares NetEase (NTES) with Spotify Technology (SPOT) using performance and risk, profitability, financial strength, growth, dividends, and valuation metrics.

Performance

Cumulative Growth

NTES
SPOT
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NetEase (NTES) vs. Spotify Technology (SPOT): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for NetEase (NTES) and Spotify Technology (SPOT). Returns over one year are annualized.

Performance at a Glance

Performance metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
1-Year Return-2.91%-31.42%

Risk

Drawdown

NTES
SPOT
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NetEase (NTES) vs. Spotify Technology (SPOT): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Risk metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
1-Year Volatility29.37%45.36%
Beta0.711.55
3-Month Avg. Volume853.55K2.07M

Company Profile

NetEase (NTES) and Spotify Technology (SPOT) both belong to the Entertainment industry, though NTES is classified under Interactive Home Entertainment while SPOT falls under Movies & Entertainment.

Spotify Technology (SPOT) trades as ordinary local shares, while NetEase (NTES) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for NetEase (NTES) and Spotify Technology (SPOT)
Profile ItemNTESSPOT
NameNetEase, Inc. American Depositary ReceiptSpotify Technology S.A.
Country/RegionChinaSweden
GICS SectorCommunication ServicesCommunication Services
GICS Industry GroupMedia & EntertainmentMedia & Entertainment
GICS IndustryEntertainmentEntertainment
GICS Sub-IndustryInteractive Home EntertainmentMovies & Entertainment
Market Capitalization80.61 billion USD99.11 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJune 30, 2000April 3, 2018
Security TypeADRCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Both NetEase (NTES) at 16.11 and Spotify Technology (SPOT) at 32.46 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

NTES

Media & Entertainment industry group

16.11

Max
71.35
Q3
37.05
Median
21.91
NTES
16.11
Q1
11.66
Min
1.74

SPOT

Media & Entertainment industry group

32.46

Max
71.35
Q3
37.05
SPOT
32.46
Median
21.91
Q1
11.66
Min
1.74
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their P/E ratio against the Media & Entertainment industry group benchmark.

Price-to-Sales Ratio (TTM)

NetEase (NTES) at 0.70 is priced about in line with its industry on P/S ratio, while Spotify Technology (SPOT) at 5.65 sits in the pricier quartile — SPOT costs more per dollar of sales.

NTES

Media & Entertainment industry group

0.70

Max
8.58
Q3
3.91
Median
1.48
NTES
0.70
Q1
0.55
Min
0.00

SPOT

Media & Entertainment industry group

5.65

Max
8.58
SPOT
5.65
Q3
3.91
Median
1.48
Q1
0.55
Min
0.00
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their P/S ratio against the Media & Entertainment industry group benchmark.

Price-to-Book Ratio (MRQ)

Both look rich against book: Spotify Technology (SPOT) at 10.10 sits in the upper P/B ratio quartile, and NetEase (NTES) at 16.55 prices even higher, above its industry range.

NTES

Media & Entertainment industry group

16.55

NTES
16.55
Max
11.21
Q3
5.56
Median
1.93
Q1
0.82
Min
-2.89

SPOT

Media & Entertainment industry group

10.10

Max
11.21
SPOT
10.10
Q3
5.56
Median
1.93
Q1
0.82
Min
-2.89
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their P/B ratio against the Media & Entertainment industry group benchmark.

Valuation at a Glance

Valuation metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
Price-to-Earnings Ratio (TTM)16.1132.46
Price-to-Sales Ratio (TTM)0.705.65
Price-to-Book Ratio (MRQ)16.5510.10
Free Cash Flow Yield42.36%0.71%

Profitability

Return on Equity (TTM)

Both NetEase (NTES) at 22.13% and Spotify Technology (SPOT) at 37.99% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

NTES

Media & Entertainment industry group

22.13%

Max
46.65%
NTES
22.13%
Q3
16.35%
Median
6.52%
Q1
-4.21%
Min
-29.59%

SPOT

Media & Entertainment industry group

37.99%

Max
46.65%
SPOT
37.99%
Q3
16.35%
Median
6.52%
Q1
-4.21%
Min
-29.59%
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their ROE against the Media & Entertainment industry group benchmark.

Net Profit Margin (TTM)

For every dollar of sales, both NetEase (NTES) at 29.84% and Spotify Technology (SPOT) at 15.45% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

NTES

Media & Entertainment industry group

29.84%

Max
30.77%
NTES
29.84%
Q3
10.51%
Median
3.81%
Q1
-3.12%
Min
-20.69%

SPOT

Media & Entertainment industry group

15.45%

Max
30.77%
SPOT
15.45%
Q3
10.51%
Median
3.81%
Q1
-3.12%
Min
-20.69%
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their net margin against the Media & Entertainment industry group benchmark.

Operating Profit Margin (TTM)

NetEase (NTES) at 41.37% operates in the top operating margin quartile, ahead of Spotify Technology (SPOT) at 15.77%, which runs around its industry’s norm.

NTES

Media & Entertainment industry group

41.37%

NTES
41.37%
Max
41.37%
Q3
16.41%
Median
8.47%
Q1
-3.09%
Min
-26.23%

SPOT

Media & Entertainment industry group

15.77%

Max
41.37%
Q3
16.41%
SPOT
15.77%
Median
8.47%
Q1
-3.09%
Min
-26.23%
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their operating margin against the Media & Entertainment industry group benchmark.

Profitability at a Glance

Profitability metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
Return on Equity (TTM)22.13%37.99%
Return on Assets (TTM)11.00%11.64%
Net Profit Margin (TTM)29.84%15.45%
Operating Profit Margin (TTM)41.37%15.77%
Gross Profit Margin (TTM)65.69%32.32%

Growth

Revenue Growth

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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

Revenue growth metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
1-Year Revenue Growth6.96%9.65%
3-Year Revenue CAGR5.29%13.59%

EPS Growth

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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

EPS growth metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
1-Year EPS Growth14.04%91.09%
3-Year EPS CAGR19.31%--

Financial Strength

Current Ratio (MRQ)

Spotify Technology (SPOT) at 2.06 keeps current ratio within its industry’s typical mid-range, while NetEase (NTES) at 3.29 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

NTES

Media & Entertainment industry group

3.29

Max
4.23
NTES
3.29
Q3
2.26
Median
1.36
Q1
0.89
Min
0.31

SPOT

Media & Entertainment industry group

2.06

Max
4.23
Q3
2.26
SPOT
2.06
Median
1.36
Q1
0.89
Min
0.31
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their current ratio against the Media & Entertainment industry group benchmark.

Debt-to-Equity Ratio (MRQ)

Both NetEase (NTES) at 0.06 and Spotify Technology (SPOT) at 0.06 keep leverage in the lower quartile of their industries, with less balance-sheet debt relative to equity than most peers.

NTES

Media & Entertainment industry group

0.06

Max
2.46
Q3
1.30
Median
0.54
Q1
0.17
NTES
0.06
Min
0.00

SPOT

Media & Entertainment industry group

0.06

Max
2.46
Q3
1.30
Median
0.54
Q1
0.17
SPOT
0.06
Min
0.00
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their debt-to-equity ratio against the Media & Entertainment industry group benchmark.

Financial Strength at a Glance

Financial strength metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
Current Ratio (MRQ)3.292.06
Debt-to-Equity Ratio (MRQ)0.060.06
Net Debt / EBITDA-3.97-2.38

Dividends

Dividend Yield (TTM)

Spotify Technology (SPOT) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile NetEase (NTES) reports a yield of 2.40%, ranking against industry peers normally.

NTES

Media & Entertainment industry group

2.40%

Max
2.67%
NTES
2.40%
Q3
1.17%
Median
0.00%
Q1
0.00%
Min
0.00%

SPOT

Media & Entertainment industry group

0.00%

Max
2.67%
Q3
1.17%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their dividend yield against the Media & Entertainment industry group benchmark.

Dividend Payout Ratio (TTM)

Spotify Technology (SPOT) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile NetEase (NTES) reports a payout of 39.66%, ranking against industry peers normally.

NTES

Media & Entertainment industry group

39.66%

Max
57.34%
NTES
39.66%
Q3
24.40%
Median
0.00%
Q1
0.00%
Min
0.00%

SPOT

Media & Entertainment industry group

0.00%

Max
57.34%
Q3
24.40%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their payout ratio against the Media & Entertainment industry group benchmark.

Dividends at a Glance

Dividend metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
Dividend Yield (TTM)2.40%0.00%
Dividend Payout Ratio (TTM)39.66%0.00%