NTES vs. WMG: NetEase vs. Warner Music Stock Comparison

November 11, 2026

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

NetEase (NTES) has more than two decades of public-market history since June 30, 2000, whereas Warner Music (WMG) listed on June 3, 2020 and has a much shorter record to draw on.

Warner Music (WMG) 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 Warner Music (WMG)
Profile Item	NTES	WMG
Name	NetEase, Inc. ADR	Warner Music Group Corp.
Country/Region	China	United States
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	16.37 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	June 30, 2000	June 3, 2020
Security Type	ADR	Common Stock

Price Performance

Cumulative Growth

NTES

WMG

GSPC

NetEase (NTES) vs. Warner Music (WMG), 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 Warner Music (WMG). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for NetEase (NTES) and Warner Music (WMG)
Metric	NTES	WMG
Total Return (1Y)	-4.51%	6.98%
Total Return (3Y, Annualized)	7.36%	1.34%
Total Return (5Y, Annualized)	7.47%	-6.02%

Risk Profile

Drawdown History

NTES

WMG

GSPC

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

Risk Metrics

Warner Music (WMG) has an aggressive beta of 1.31, indicating higher sensitivity to broad-market moves, while NetEase (NTES) is defensive at 0.61 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Risk profile metrics for NetEase (NTES) and Warner Music (WMG)
Metric	NTES	WMG
Volatility (1Y, Annualized)	33.73%	35.24%
Beta (5Y)	0.61	1.31
Max Drawdown (5Y)	-51.38%	-53.17%
Avg. Volume (3M)	738.35K	2.05M

Risk-Adjusted Performance

Risk-Return Positioning

NTES and WMG 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 Warner Music (WMG)
Metric	NTES	WMG
Sharpe Ratio (1Y)	-0.26	0.08
Sortino Ratio (1Y)	-0.39	0.11

Profitability

ROE (TTM)

Both companies show strong equity returns, but Warner Music (WMG) at 70.07% is the standout with ROE above its industry range; NetEase (NTES) at 20.37% also sits in the top quartile.

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%

WMG

Media & Entertainment industry group

70.07%

WMG: 70.07%
Max: 49.92%
Q3: 17.95%
Median: 7.20%
Q1: -4.53%
Min: -26.31%

NetEase (NTES) vs. Warner Music (WMG): A comparison of their ROE against the Media & Entertainment industry group benchmark.

Net Margin (TTM)

NetEase (NTES) at 27.88% retains a top-quartile share of revenue as profit, ahead of Warner Music (WMG) at 9.20%, which keeps about the industry-typical share.

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%

WMG

Media & Entertainment industry group

9.20%

Max: 32.91%
Q3: 11.75%
WMG: 9.20%
Median: 5.04%
Q1: -4.17%
Min: -25.14%

NetEase (NTES) vs. Warner Music (WMG): 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 Warner Music (WMG) at 16.74%, which runs around its industry’s norm.

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%

WMG

Media & Entertainment industry group

16.74%

Max: 40.16%
Q3: 18.72%
WMG: 16.74%
Median: 8.63%
Q1: 1.90%
Min: -22.08%

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

Profitability Metrics

Profitability metrics for NetEase (NTES) and Warner Music (WMG)
Metric	NTES	WMG
ROE (TTM)	20.37%	70.07%
ROA (TTM)	11.65%	7.65%
Net Margin (TTM)	27.88%	9.20%
Operating Margin (TTM)	40.16%	16.74%
Gross Margin (TTM)	67.15%	45.77%

Growth

Revenue Growth

Both NetEase (NTES) at 6.96% and Warner Music (WMG) at 4.37% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

NetEase (NTES) vs. Warner Music (WMG): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both NetEase (NTES) at 14.04% and Warner Music (WMG) at -16.87% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

NetEase (NTES) vs. Warner Music (WMG): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for NetEase (NTES) and Warner Music (WMG)
Metric	NTES	WMG
Revenue Growth (YoY)	6.96%	4.37%
Revenue Growth (3Y CAGR)	5.29%	4.25%
EPS Growth (YoY)	14.04%	-16.87%
EPS Growth (3Y CAGR)	19.31%	-13.33%

Financial Strength

Current Ratio (MRQ)

NetEase (NTES) at 3.45 carries current ratio above its industry’s typical mid-range, while Warner Music (WMG) at 0.73 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

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

WMG

Media & Entertainment industry group

0.73

Max: 4.69
Q3: 2.53
Median: 1.52
Q1: 0.95
WMG: 0.73
Min: 0.28

NetEase (NTES) vs. Warner Music (WMG): 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 quartile, while Warner Music (WMG) at 4.53 is above its industry debt-to-equity ratio range.

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

WMG

Media & Entertainment industry group

4.53

WMG: 4.53
Max: 3.65
Q3: 1.69
Median: 0.46
Q1: 0.17
Min: 0.00

NetEase (NTES) vs. Warner Music (WMG): 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 Warner Music (WMG)
Metric	NTES	WMG
Current Ratio (MRQ)	3.45	0.73
Debt / Equity (MRQ)	0.07	4.53
Net Debt / EBITDA	-3.76	2.57

Dividends

Dividend Yield (TTM)

Both NetEase (NTES) at 3.17% and Warner Music (WMG) at 2.38% 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%

WMG

Media & Entertainment industry group

2.38%

WMG: 2.38%
Max: 1.33%
Q3: 0.65%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

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

Dividend Payout Ratio (TTM)

Both NetEase (NTES) at 41.85% and Warner Music (WMG) at 60.80% 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%

WMG

Media & Entertainment industry group

60.80%

Max: 71.43%
WMG: 60.80%
Q3: 28.98%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for NetEase (NTES) and Warner Music (WMG)
Metric	NTES	WMG
Dividend Yield (TTM)	3.17%	2.38%
Dividend Payout Ratio (TTM)	41.85%	60.80%

Valuation

P/E Ratio (TTM)

Both NetEase (NTES) at 17.98 and Warner Music (WMG) at 25.04 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

WMG

Media & Entertainment industry group

25.04

Max: 51.21
Q3: 28.90
WMG: 25.04
Median: 17.98
Q1: 11.53
Min: 1.64

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

P/S Ratio (TTM)

On P/S ratio, both NetEase (NTES) at 0.71 and Warner Music (WMG) at 2.24 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

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

WMG

Media & Entertainment industry group

2.24

Max: 7.43
Q3: 3.82
WMG: 2.24
Median: 1.40
Q1: 0.70
Min: 0.00

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

P/B Ratio (MRQ)

Measured against book value, both NetEase (NTES) at 16.57 and Warner Music (WMG) at 19.17 look expensive — each P/B ratio sits above its industry’s benchmark range.

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

WMG

Media & Entertainment industry group

19.17

WMG: 19.17
Max: 11.45
Q3: 5.30
Median: 1.84
Q1: 0.77
Min: -2.61

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

Valuation Metrics

Valuation metrics for NetEase (NTES) and Warner Music (WMG)
Metric	NTES	WMG
P/E Ratio (TTM)	17.98	25.04
P/S Ratio (TTM)	0.71	2.24
P/B Ratio (MRQ)	16.57	19.17
Free Cash Flow Yield (TTM)	39.54%	2.33%