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.
| Profile Item | NTES | SPOT |
|---|---|---|
| Name | NetEase, Inc. American Depositary Receipt | Spotify Technology S.A. |
| Country/Region | China | Sweden |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry Group | Media & Entertainment | Media & Entertainment |
| GICS Industry | Entertainment | Entertainment |
| GICS Sub-Industry | Interactive Home Entertainment | Movies & Entertainment |
| Market Capitalization | 82.94 billion USD | 101.42 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | June 30, 2000 | April 3, 2018 |
| Security Type | ADR | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | NTES | SPOT |
|---|---|---|
| Total Return (1Y) | -3.38% | -30.22% |
| Total Return (3Y, Annualized) | 11.03% | 42.15% |
| Total Return (5Y, Annualized) | 5.01% | 14.75% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | NTES | SPOT |
|---|---|---|
| Volatility (1Y, Annualized) | 31.41% | 44.96% |
| Beta (5Y) | 0.73 | 1.58 |
| Max Drawdown (5Y) | -51.38% | -76.39% |
| Avg. Volume (3M) | 1.02M | 2.16M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | NTES | SPOT |
|---|---|---|
| Sharpe Ratio (1Y) | -0.24 | -0.76 |
| Sortino Ratio (1Y) | -0.35 | -1.06 |
Profitability
ROE (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
- 38.89%
- NTES
- 22.13%
- Q3
- 16.35%
- Median
- 6.52%
- Q1
- -3.39%
- Min
- -29.59%
SPOT
Media & Entertainment industry group
37.99%
- Max
- 38.89%
- SPOT
- 37.99%
- Q3
- 16.35%
- Median
- 6.52%
- Q1
- -3.39%
- Min
- -29.59%
Net 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
- 11.05%
- Median
- 3.73%
- Q1
- -3.12%
- Min
- -24.17%
SPOT
Media & Entertainment industry group
15.45%
- Max
- 30.77%
- SPOT
- 15.45%
- Q3
- 11.05%
- Median
- 3.73%
- Q1
- -3.12%
- Min
- -24.17%
Operating 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
- 15.96%
- Median
- 7.22%
- Q1
- -3.48%
- Min
- -27.39%
SPOT
Media & Entertainment industry group
15.77%
- Max
- 41.37%
- Q3
- 15.96%
- SPOT
- 15.77%
- Median
- 7.22%
- Q1
- -3.48%
- Min
- -27.39%
Profitability Metrics
| Metric | NTES | SPOT |
|---|---|---|
| ROE (TTM) | 22.13% | 37.99% |
| ROA (TTM) | 11.00% | 11.64% |
| Net Margin (TTM) | 29.84% | 15.45% |
| Operating Margin (TTM) | 41.37% | 15.77% |
| Gross Margin (TTM) | 65.69% | 32.32% |
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.
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.
Growth Metrics
| Metric | NTES | SPOT |
|---|---|---|
| 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 2.06 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
- 4.37
- NTES
- 3.29
- Q3
- 2.40
- Median
- 1.44
- Q1
- 1.02
- Min
- 0.31
SPOT
Media & Entertainment industry group
2.06
- Max
- 4.37
- Q3
- 2.40
- SPOT
- 2.06
- Median
- 1.44
- Q1
- 1.02
- Min
- 0.31
Debt / Equity (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
- 1.10
- Median
- 0.47
- Q1
- 0.13
- NTES
- 0.06
- Min
- 0.00
SPOT
Media & Entertainment industry group
0.06
- Max
- 2.46
- Q3
- 1.10
- Median
- 0.47
- Q1
- 0.13
- SPOT
- 0.06
- Min
- 0.00
Financial Strength Metrics
| Metric | NTES | SPOT |
|---|---|---|
| Current Ratio (MRQ) | 3.29 | 2.06 |
| Debt / Equity (MRQ) | 0.06 | 0.06 |
| 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 3.11%, ranking against industry peers normally.
NTES
Media & Entertainment industry group
3.11%
- NTES
- 3.11%
- Max
- 1.97%
- Q3
- 0.88%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SPOT
Media & Entertainment industry group
0.00%
- Max
- 1.97%
- Q3
- 0.88%
- SPOT
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
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
- 41.30%
- NTES
- 39.66%
- Q3
- 17.37%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SPOT
Media & Entertainment industry group
0.00%
- Max
- 41.30%
- Q3
- 17.37%
- SPOT
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | NTES | SPOT |
|---|---|---|
| Dividend Yield (TTM) | 3.11% | 0.00% |
| Dividend Payout Ratio (TTM) | 39.66% | 0.00% |
Valuation
P/E Ratio (TTM)
Both NetEase (NTES) at 17.27 and Spotify Technology (SPOT) at 33.55 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
17.27
- Max
- 78.62
- Q3
- 41.37
- Median
- 23.47
- NTES
- 17.27
- Q1
- 12.58
- Min
- 1.74
SPOT
Media & Entertainment industry group
33.55
- Max
- 78.62
- Q3
- 41.37
- SPOT
- 33.55
- Median
- 23.47
- Q1
- 12.58
- Min
- 1.74
P/S Ratio (TTM)
NetEase (NTES) at 0.73 is priced about in line with its industry on P/S ratio, while Spotify Technology (SPOT) at 5.79 sits in the pricier quartile — SPOT costs more per dollar of sales.
NTES
Media & Entertainment industry group
0.73
- Max
- 7.60
- Q3
- 3.84
- Median
- 1.52
- NTES
- 0.73
- Q1
- 0.68
- Min
- 0.00
SPOT
Media & Entertainment industry group
5.79
- Max
- 7.60
- SPOT
- 5.79
- Q3
- 3.84
- Median
- 1.52
- Q1
- 0.68
- Min
- 0.00
P/B Ratio (MRQ)
Both look rich against book: Spotify Technology (SPOT) at 11.12 sits in the upper P/B ratio quartile, and NetEase (NTES) at 17.04 prices even higher, above its industry range.
NTES
Media & Entertainment industry group
17.04
- NTES
- 17.04
- Max
- 13.29
- Q3
- 5.93
- Median
- 2.00
- Q1
- 0.76
- Min
- -3.80
SPOT
Media & Entertainment industry group
11.12
- Max
- 13.29
- SPOT
- 11.12
- Q3
- 5.93
- Median
- 2.00
- Q1
- 0.76
- Min
- -3.80
Valuation Metrics
| Metric | NTES | SPOT |
|---|---|---|
| P/E Ratio (TTM) | 17.27 | 33.55 |
| P/S Ratio (TTM) | 0.73 | 5.79 |
| P/B Ratio (MRQ) | 17.04 | 11.12 |
| Free Cash Flow Yield (TTM) | 41.17% | 0.70% |