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NTES vs. SPOT: NetEase vs. Spotify Stock Comparison

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

Spotify (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 (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 Capitalization75.95 billion USD120.11 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 (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 (SPOT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for NetEase (NTES) and Spotify (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 (SPOT)
MetricNTESSPOT
Total Return (1Y)-17.42%-13.30%
Total Return (3Y, Annualized)8.25%55.76%
Total Return (5Y, Annualized)5.29%18.22%

Risk Profile

Drawdown History

NTES
SPOT
GSPC
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NetEase (NTES) vs. Spotify (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 (SPOT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Spotify (SPOT) has an aggressive beta of 1.51, indicating higher sensitivity to broad-market moves, while NetEase (NTES) is defensive at 0.64 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Risk profile metrics for NetEase (NTES) and Spotify (SPOT)
MetricNTESSPOT
Volatility (1Y, Annualized)33.05%46.46%
Beta (5Y)0.641.51
Max Drawdown (5Y)-51.38%-76.39%
Avg. Volume (3M)693.47K1.74M

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 (SPOT)
MetricNTESSPOT
Sharpe Ratio (1Y)-0.66-0.38
Sortino Ratio (1Y)-0.96-0.57

Profitability

ROE (TTM)

Both NetEase (NTES) at 20.37% and Spotify (SPOT) at 35.81% 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
17.46%
Median
7.50%
Q1
-3.05%
Min
-26.31%

SPOT

Media & Entertainment industry group

35.81%

Max
45.82%
SPOT
35.81%
Q3
17.46%
Median
7.50%
Q1
-3.05%
Min
-26.31%
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NetEase (NTES) vs. Spotify (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 (SPOT) at 15.73% 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
32.91%
NTES
27.88%
Q3
11.58%
Median
5.49%
Q1
-3.17%
Min
-25.14%

SPOT

Media & Entertainment industry group

15.73%

Max
32.91%
SPOT
15.73%
Q3
11.58%
Median
5.49%
Q1
-3.17%
Min
-25.14%
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NetEase (NTES) vs. Spotify (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 (SPOT) at 13.52%, which runs around its industry’s norm.

NTES

Media & Entertainment industry group

40.16%

NTES
40.16%
Max
40.16%
Q3
18.63%
Median
10.04%
Q1
0.29%
Min
-19.55%

SPOT

Media & Entertainment industry group

13.52%

Max
40.16%
Q3
18.63%
SPOT
13.52%
Median
10.04%
Q1
0.29%
Min
-19.55%
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NetEase (NTES) vs. Spotify (SPOT): A comparison of their operating margin against the Media & Entertainment industry group benchmark.

Profitability Metrics

Profitability metrics for NetEase (NTES) and Spotify (SPOT)
MetricNTESSPOT
ROE (TTM)20.37%35.81%
ROA (TTM)11.65%11.82%
Net Margin (TTM)27.88%15.73%
Operating Margin (TTM)40.16%13.52%
Gross Margin (TTM)67.15%33.12%

Growth

Revenue Growth

Both NetEase (NTES) at 6.96% and Spotify (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 (SPOT): A comparison of their Revenue Growth across different time periods.

EPS Growth

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

Growth Metrics

Growth metrics for NetEase (NTES) and Spotify (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 (SPOT) at 2.13 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
2.42
Median
1.53
Q1
0.90
Min
0.25

SPOT

Media & Entertainment industry group

2.13

Max
4.50
Q3
2.42
SPOT
2.13
Median
1.53
Q1
0.90
Min
0.25
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NetEase (NTES) vs. Spotify (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 (SPOT) at 0.05 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
3.84
Q3
1.71
Median
0.60
Q1
0.17
NTES
0.07
Min
0.00

SPOT

Media & Entertainment industry group

0.05

Max
3.84
Q3
1.71
Median
0.60
Q1
0.17
SPOT
0.05
Min
0.00
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NetEase (NTES) vs. Spotify (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 (SPOT)
MetricNTESSPOT
Current Ratio (MRQ)3.452.13
Debt / Equity (MRQ)0.070.05
Net Debt / EBITDA-3.76-2.40

Dividends

Dividend Yield (TTM)

Spotify (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 3.38%, ranking against industry peers normally.

NTES

Media & Entertainment industry group

3.38%

NTES
3.38%
Max
1.70%
Q3
0.69%
Median
0.00%
Q1
0.00%
Min
0.00%

SPOT

Media & Entertainment industry group

0.00%

Max
1.70%
Q3
0.69%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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NetEase (NTES) vs. Spotify (SPOT): A comparison of their dividend yield against the Media & Entertainment industry group benchmark.

Dividend Payout Ratio (TTM)

Spotify (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 41.85%, ranking against industry peers normally.

NTES

Media & Entertainment industry group

41.85%

Max
60.80%
NTES
41.85%
Q3
28.16%
Median
0.00%
Q1
0.00%
Min
0.00%

SPOT

Media & Entertainment industry group

0.00%

Max
60.80%
Q3
28.16%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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NetEase (NTES) vs. Spotify (SPOT): A comparison of their payout ratio against the Media & Entertainment industry group benchmark.

Dividend Metrics

Dividend metrics for NetEase (NTES) and Spotify (SPOT)
MetricNTESSPOT
Dividend Yield (TTM)3.38%0.00%
Dividend Payout Ratio (TTM)41.85%0.00%

Valuation

P/E Ratio (TTM)

Both NetEase (NTES) at 16.47 and Spotify (SPOT) at 35.60 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

16.47

Max
73.62
Q3
36.70
Median
19.19
NTES
16.47
Q1
10.72
Min
1.50

SPOT

Media & Entertainment industry group

35.60

Max
73.62
Q3
36.70
SPOT
35.60
Median
19.19
Q1
10.72
Min
1.50
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NetEase (NTES) vs. Spotify (SPOT): A comparison of their P/E ratio against the Media & Entertainment industry group benchmark.

P/S Ratio (TTM)

NetEase (NTES) at 0.65 looks cheap on sales in the lower P/S ratio quartile, while Spotify (SPOT) at 6.39 looks rich in the upper quartile — a clear gap in price per dollar of revenue.

NTES

Media & Entertainment industry group

0.65

Max
8.78
Q3
3.91
Median
1.61
Q1
0.65
NTES
0.65
Min
0.00

SPOT

Media & Entertainment industry group

6.39

Max
8.78
SPOT
6.39
Q3
3.91
Median
1.61
Q1
0.65
Min
0.00
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NetEase (NTES) vs. Spotify (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 (SPOT) at 12.23 sits in the upper P/B ratio quartile, and NetEase (NTES) at 15.18 prices even higher, above its industry range.

NTES

Media & Entertainment industry group

15.18

NTES
15.18
Max
12.23
Q3
5.66
Median
1.94
Q1
0.76
Min
-1.97

SPOT

Media & Entertainment industry group

12.23

SPOT
12.23
Max
12.23
Q3
5.66
Median
1.94
Q1
0.76
Min
-1.97
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NetEase (NTES) vs. Spotify (SPOT): A comparison of their P/B ratio against the Media & Entertainment industry group benchmark.

Valuation Metrics

Valuation metrics for NetEase (NTES) and Spotify (SPOT)
MetricNTESSPOT
P/E Ratio (TTM)16.4735.60
P/S Ratio (TTM)0.656.39
P/B Ratio (MRQ)15.1812.23
Free Cash Flow Yield (TTM)43.15%1.19%