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

How do NetEase (NTES) and Spotify Technology (SPOT) 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

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. ADRSpotify Technology S.A.
Country/RegionChinaSweden
GICS SectorCommunication ServicesCommunication Services
GICS Industry GroupMedia & EntertainmentMedia & Entertainment
GICS IndustryEntertainmentEntertainment
GICS Sub-IndustryInteractive Home EntertainmentMovies & Entertainment
Market Capitalization76.38 billion USD108.09 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJune 30, 2000April 3, 2018
Security TypeADRCommon Stock

Price Performance

Cumulative Growth

NTES
SPOT
GSPC
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NetEase (NTES) vs. Spotify Technology (SPOT), with S&P 500 (GSPC) for reference: 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.

Calendar-Year Returns

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Calendar-year total returns for NetEase (NTES) and Spotify Technology (SPOT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
Total Return (1Y)-8.23%-23.84%
Total Return (3Y, Annualized)7.39%49.40%
Total Return (5Y, Annualized)7.49%16.24%

Risk Profile

Drawdown History

NTES
SPOT
GSPC
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NetEase (NTES) vs. Spotify Technology (SPOT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for NetEase (NTES) and Spotify Technology (SPOT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Spotify Technology (SPOT) has an aggressive beta of 1.60, indicating higher sensitivity to broad-market moves, while NetEase (NTES) is defensive at 0.68 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Risk profile metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
Volatility (1Y, Annualized)34.07%44.32%
Beta (5Y)0.681.60
Max Drawdown (5Y)-51.38%-76.39%
Avg. Volume (3M)902.81K1.77M

Risk-Adjusted Performance

Risk-Return Positioning

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NTES and SPOT are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
Sharpe Ratio (1Y)-0.36-0.63
Sortino Ratio (1Y)-0.53-0.90

Profitability

ROE (TTM)

Both NetEase (NTES) at 20.37% and Spotify Technology (SPOT) at 44.48% 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

20.37%

Max
45.82%
NTES
20.37%
Q3
16.48%
Median
6.89%
Q1
-3.55%
Min
-26.31%

SPOT

Media & Entertainment industry group

44.48%

Max
45.82%
SPOT
44.48%
Q3
16.48%
Median
6.89%
Q1
-3.55%
Min
-26.31%
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their ROE against the Media & Entertainment industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both NetEase (NTES) at 27.88% and Spotify Technology (SPOT) at 18.43% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

NTES

Media & Entertainment industry group

27.88%

Max
29.84%
NTES
27.88%
Q3
10.43%
Median
4.53%
Q1
-3.40%
Min
-17.61%

SPOT

Media & Entertainment industry group

18.43%

Max
29.84%
SPOT
18.43%
Q3
10.43%
Median
4.53%
Q1
-3.40%
Min
-17.61%
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their net margin against the Media & Entertainment industry group benchmark.

Operating Margin (TTM)

NetEase (NTES) at 40.16% operates in the top operating margin quartile, ahead of Spotify Technology (SPOT) at 13.71%, which runs around its industry’s norm.

NTES

Media & Entertainment industry group

40.16%

NTES
40.16%
Max
40.16%
Q3
18.59%
Median
10.04%
Q1
0.82%
Min
-19.55%

SPOT

Media & Entertainment industry group

13.71%

Max
40.16%
Q3
18.59%
SPOT
13.71%
Median
10.04%
Q1
0.82%
Min
-19.55%
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their operating margin against the Media & Entertainment industry group benchmark.

Profitability Metrics

Profitability metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
ROE (TTM)20.37%44.48%
ROA (TTM)11.65%12.19%
Net Margin (TTM)27.88%18.43%
Operating Margin (TTM)40.16%13.71%
Gross Margin (TTM)67.15%32.77%

Growth

Revenue Growth

Both NetEase (NTES) at 6.96% and Spotify Technology (SPOT) at 9.65% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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

EPS Growth

Spotify Technology (SPOT) at 91.09% sits in the top EPS growth quartile, while NetEase (NTES) at 14.04% is closer to the peer norm — faster per-share earnings growth for SPOT.

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

Growth Metrics

Growth metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
Revenue Growth (YoY)6.96%9.65%
Revenue Growth (3Y CAGR)5.29%13.59%
EPS Growth (YoY)14.04%91.09%
EPS Growth (3Y CAGR)19.31%--

Financial Strength

Current Ratio (MRQ)

Spotify Technology (SPOT) at 2.11 keeps current ratio within its industry’s typical mid-range, while NetEase (NTES) at 3.45 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

3.45

Max
4.50
NTES
3.45
Q3
2.38
Median
1.45
Q1
0.86
Min
0.23

SPOT

Media & Entertainment industry group

2.11

Max
4.50
Q3
2.38
SPOT
2.11
Median
1.45
Q1
0.86
Min
0.23
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their current ratio against the Media & Entertainment industry group benchmark.

Debt / Equity (MRQ)

Both NetEase (NTES) at 0.07 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

0.07

Max
2.66
Q3
1.44
Median
0.51
Q1
0.17
NTES
0.07
Min
0.00

SPOT

Media & Entertainment industry group

0.06

Max
2.66
Q3
1.44
Median
0.51
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 Metrics

Financial strength metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
Current Ratio (MRQ)3.452.11
Debt / Equity (MRQ)0.070.06
Net Debt / EBITDA-3.76-2.43

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 3.42%, ranking against industry peers normally.

NTES

Media & Entertainment industry group

3.42%

NTES
3.42%
Max
1.42%
Q3
0.61%
Median
0.00%
Q1
0.00%
Min
0.00%

SPOT

Media & Entertainment industry group

0.00%

Max
1.42%
Q3
0.61%
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 41.68%, ranking against industry peers normally.

NTES

Media & Entertainment industry group

41.68%

Max
43.37%
NTES
41.68%
Q3
19.42%
Median
0.00%
Q1
0.00%
Min
0.00%

SPOT

Media & Entertainment industry group

0.00%

Max
43.37%
Q3
19.42%
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.

Dividend Metrics

Dividend metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
Dividend Yield (TTM)3.42%0.00%
Dividend Payout Ratio (TTM)41.68%0.00%

Valuation

P/E Ratio (TTM)

Both NetEase (NTES) at 15.93 and Spotify Technology (SPOT) at 28.40 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

15.93

Max
71.36
Q3
37.90
Median
18.95
NTES
15.93
Q1
10.54
Min
1.77

SPOT

Media & Entertainment industry group

28.40

Max
71.36
Q3
37.90
SPOT
28.40
Median
18.95
Q1
10.54
Min
1.77
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NetEase (NTES) vs. Spotify Technology (SPOT): A comparison of their P/E ratio against the Media & Entertainment industry group benchmark.

P/S Ratio (TTM)

NetEase (NTES) at 0.66 is priced about in line with its industry on P/S ratio, while Spotify Technology (SPOT) at 5.97 sits in the pricier quartile — SPOT costs more per dollar of sales.

NTES

Media & Entertainment industry group

0.66

Max
7.24
Q3
3.54
Median
1.43
NTES
0.66
Q1
0.55
Min
0.00

SPOT

Media & Entertainment industry group

5.97

Max
7.24
SPOT
5.97
Q3
3.54
Median
1.43
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.

P/B Ratio (MRQ)

Both look rich against book: Spotify Technology (SPOT) at 11.04 sits in the upper P/B ratio quartile, and NetEase (NTES) at 15.35 prices even higher, above its industry range.

NTES

Media & Entertainment industry group

15.35

NTES
15.35
Max
11.38
Q3
5.03
Median
1.89
Q1
0.75
Min
-3.64

SPOT

Media & Entertainment industry group

11.04

Max
11.38
SPOT
11.04
Q3
5.03
Median
1.89
Q1
0.75
Min
-3.64
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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 Metrics

Valuation metrics for NetEase (NTES) and Spotify Technology (SPOT)
MetricNTESSPOT
P/E Ratio (TTM)15.9328.40
P/S Ratio (TTM)0.665.97
P/B Ratio (MRQ)15.3511.04
Free Cash Flow Yield (TTM)42.91%1.43%