NTES vs. TME: NetEase vs. Tencent Music Entertainment Stock Comparison

November 11, 2026

How do NetEase (NTES) 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

NetEase (NTES) and Tencent Music Entertainment (TME) both belong to the Entertainment industry, though NTES is classified under Interactive Home Entertainment while TME falls under Movies & Entertainment.

Both NetEase (NTES) and Tencent Music Entertainment (TME) trade as ADRs — their core financials are comparable, but keep FX, depositary-program fees, and dividend withholding in view for each.

Company profile comparison for NetEase (NTES) and Tencent Music Entertainment (TME)
Profile Item	NTES	TME
Name	NetEase, Inc. ADR	Tencent Music Entertainment Group ADR
Country/Region	China	China
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	82.89 billion USD	15.58 billion USD
Currency	USD	USD
Exchange	Nasdaq	NYSE
Listing Date	June 30, 2000	December 12, 2018
Security Type	ADR	ADR

Price Performance

Cumulative Growth

NTES

TME

GSPC

NetEase (NTES) vs. Tencent Music Entertainment (TME), 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 Tencent Music Entertainment (TME). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for NetEase (NTES) and Tencent Music Entertainment (TME). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for NetEase (NTES) and Tencent Music Entertainment (TME)
Metric	NTES	TME
Total Return (1Y)	-4.51%	-55.15%
Total Return (3Y, Annualized)	7.36%	9.39%
Total Return (5Y, Annualized)	7.47%	4.17%

Risk Profile

Drawdown History

NTES

TME

GSPC

NetEase (NTES) vs. Tencent Music Entertainment (TME), 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 Tencent Music Entertainment (TME). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for NetEase (NTES) and Tencent Music Entertainment (TME)
Metric	NTES	TME
Volatility (1Y, Annualized)	33.73%	47.08%
Beta (5Y)	0.61	0.70
Max Drawdown (5Y)	-51.38%	-69.85%
Avg. Volume (3M)	738.35K	8.07M

Risk-Adjusted Performance

Risk-Return Positioning

NTES and TME 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 Tencent Music Entertainment (TME)
Metric	NTES	TME
Sharpe Ratio (1Y)	-0.26	-1.26
Sortino Ratio (1Y)	-0.39	-1.50

Profitability

ROE (TTM)

NetEase (NTES) at 20.37% sits in the top ROE quartile, while Tencent Music Entertainment (TME) at 10.97% is closer to the peer norm — stronger capital efficiency for NTES.

NTES

Media & Entertainment industry group

20.37%

Max: 49.92%
NTES: 20.37%
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%

NetEase (NTES) vs. Tencent Music Entertainment (TME): 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 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.

NTES

Media & Entertainment industry group

27.88%

Max: 32.91%
NTES: 27.88%
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%

NetEase (NTES) vs. Tencent Music Entertainment (TME): A comparison of their net margin against the Media & Entertainment industry group benchmark.

Operating Margin (TTM)

Both NetEase (NTES) at 40.16% 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.

NTES

Media & Entertainment industry group

40.16%

NTES: 40.16%
Max: 40.16%
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%

NetEase (NTES) vs. Tencent Music Entertainment (TME): A comparison of their operating margin against the Media & Entertainment industry group benchmark.

Profitability Metrics

Profitability metrics for NetEase (NTES) and Tencent Music Entertainment (TME)
Metric	NTES	TME
ROE (TTM)	20.37%	10.97%
ROA (TTM)	11.65%	5.60%
Net Margin (TTM)	27.88%	26.28%
Operating Margin (TTM)	40.16%	29.18%
Gross Margin (TTM)	67.15%	44.32%

Growth

Revenue Growth

Tencent Music Entertainment (TME) at 15.85% sits in the top revenue growth quartile, while NetEase (NTES) at 6.96% is closer to the peer norm — faster top-line expansion for TME.

NetEase (NTES) vs. Tencent Music Entertainment (TME): A comparison of their Revenue Growth across different time periods.

EPS Growth

Tencent Music Entertainment (TME) at 67.92% 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 TME.

NetEase (NTES) vs. Tencent Music Entertainment (TME): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for NetEase (NTES) and Tencent Music Entertainment (TME)
Metric	NTES	TME
Revenue Growth (YoY)	6.96%	15.85%
Revenue Growth (3Y CAGR)	5.29%	5.10%
EPS Growth (YoY)	14.04%	67.92%
EPS Growth (3Y CAGR)	19.31%	46.17%

Financial Strength

Current Ratio (MRQ)

Tencent Music Entertainment (TME) at 1.75 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: 4.69
NTES: 3.45
Q3: 2.53
Median: 1.52
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

NetEase (NTES) vs. Tencent Music Entertainment (TME): A comparison of their current ratio against the Media & Entertainment industry group benchmark.

Debt / Equity (MRQ)

NetEase (NTES) at 0.07 keeps leverage in the lower industry quartile, while Tencent Music Entertainment (TME) at 0.21 runs a more typical debt-to-equity mix.

NTES

Media & Entertainment industry group

0.07

Max: 3.65
Q3: 1.69
Median: 0.46
Q1: 0.17
NTES: 0.07
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

NetEase (NTES) vs. Tencent Music Entertainment (TME): 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 Tencent Music Entertainment (TME)
Metric	NTES	TME
Current Ratio (MRQ)	3.45	1.75
Debt / Equity (MRQ)	0.07	0.21
Net Debt / EBITDA	-3.76	-1.22

Dividends

Dividend Yield (TTM)

Both NetEase (NTES) at 3.17% and Tencent Music Entertainment (TME) at 17.77% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

NTES

Media & Entertainment industry group

3.17%

NTES: 3.17%
Max: 1.33%
Q3: 0.65%
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%

NetEase (NTES) vs. Tencent Music Entertainment (TME): A comparison of their dividend yield against the Media & Entertainment industry group benchmark.

Dividend Payout Ratio (TTM)

Both NetEase (NTES) at 41.85% and Tencent Music Entertainment (TME) at 29.65% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

NTES

Media & Entertainment industry group

41.85%

Max: 71.43%
NTES: 41.85%
Q3: 28.98%
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%

NetEase (NTES) vs. Tencent Music Entertainment (TME): A comparison of their payout ratio against the Media & Entertainment industry group benchmark.

Dividend Metrics

Dividend metrics for NetEase (NTES) and Tencent Music Entertainment (TME)
Metric	NTES	TME
Dividend Yield (TTM)	3.17%	17.77%
Dividend Payout Ratio (TTM)	41.85%	29.65%

Valuation

P/E Ratio (TTM)

Both NetEase (NTES) at 17.98 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.

NTES

Media & Entertainment industry group

17.98

Max: 51.21
Q3: 28.90
NTES: 17.98
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

NetEase (NTES) vs. Tencent Music Entertainment (TME): A comparison of their P/E ratio against the Media & Entertainment industry group benchmark.

P/S Ratio (TTM)

Tencent Music Entertainment (TME) at 0.46 sits in the cheaper P/S ratio quartile while NetEase (NTES) at 0.71 prices around its industry’s middle — TME costs less per dollar of sales, though read it alongside growth and margins.

NTES

Media & Entertainment industry group

0.71

Max: 7.43
Q3: 3.82
Median: 1.40
NTES: 0.71
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

NetEase (NTES) vs. Tencent Music Entertainment (TME): A comparison of their P/S ratio against the Media & Entertainment industry group benchmark.

P/B Ratio (MRQ)

Tencent Music Entertainment (TME) at 1.35 sits near its industry’s typical P/B ratio, while NetEase (NTES) at 16.57 prices above its benchmark range — NTES looks rich relative to book.

NTES

Media & Entertainment industry group

16.57

NTES: 16.57
Max: 11.45
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

NetEase (NTES) vs. Tencent Music Entertainment (TME): A comparison of their P/B ratio against the Media & Entertainment industry group benchmark.

Valuation Metrics

Valuation metrics for NetEase (NTES) and Tencent Music Entertainment (TME)
Metric	NTES	TME
P/E Ratio (TTM)	17.98	11.66
P/S Ratio (TTM)	0.71	0.46
P/B Ratio (MRQ)	16.57	1.35
Free Cash Flow Yield (TTM)	39.54%	45.80%