RDDT vs. TME: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at RDDT and TME, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
RDDT is a standard domestic listing, while TME trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
| Symbol | RDDT | TME |
|---|---|---|
| Company Name | Reddit, Inc. | Tencent Music Entertainment Group |
| Country | United States | China |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry | Interactive Media & Services | Entertainment |
| Market Capitalization | 44.94 billion USD | 35.72 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 21, 2024 | December 12, 2018 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of RDDT and TME by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | RDDT | TME |
|---|---|---|
| 5-Day Price Return | -2.42% | -1.52% |
| 13-Week Price Return | 52.75% | 19.75% |
| 26-Week Price Return | 91.34% | 62.08% |
| 52-Week Price Return | 242.86% | 90.07% |
| Month-to-Date Return | 2.18% | -4.81% |
| Year-to-Date Return | 40.72% | 105.64% |
| 10-Day Avg. Volume | 6.32M | 6.47M |
| 3-Month Avg. Volume | 7.10M | 6.31M |
| 3-Month Volatility | 62.57% | 38.83% |
| Beta | 2.16 | 0.51 |
Profitability
Return on Equity (TTM)
RDDT
9.93%
Interactive Media & Services Industry
- Max
- 49.37%
- Q3
- 33.08%
- Median
- 10.37%
- Q1
- 5.76%
- Min
- -24.17%
RDDT’s Return on Equity of 9.93% is on par with the norm for the Interactive Media & Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
TME
10.55%
Entertainment Industry
- Max
- 42.50%
- Q3
- 24.06%
- Median
- 13.69%
- Q1
- 5.35%
- Min
- -17.95%
TME’s Return on Equity of 10.55% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
RDDT
12.97%
Interactive Media & Services Industry
- Max
- 49.74%
- Q3
- 29.54%
- Median
- 20.53%
- Q1
- 7.52%
- Min
- -14.52%
RDDT’s Net Profit Margin of 12.97% is aligned with the median group of its peers in the Interactive Media & Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
TME
33.83%
Entertainment Industry
- Max
- 45.33%
- Q3
- 24.40%
- Median
- 13.94%
- Q1
- 4.28%
- Min
- -23.67%
A Net Profit Margin of 33.83% places TME in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
RDDT
7.87%
Interactive Media & Services Industry
- Max
- 65.96%
- Q3
- 36.82%
- Median
- 18.53%
- Q1
- 7.69%
- Min
- -18.13%
RDDT’s Operating Profit Margin of 7.87% is around the midpoint for the Interactive Media & Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
TME
28.23%
Entertainment Industry
- Max
- 41.77%
- Q3
- 28.26%
- Median
- 16.13%
- Q1
- 8.03%
- Min
- -3.93%
TME’s Operating Profit Margin of 28.23% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | RDDT | TME |
|---|---|---|
| Return on Equity (TTM) | 9.93% | 10.55% |
| Return on Assets (TTM) | 9.04% | 7.89% |
| Net Profit Margin (TTM) | 12.97% | 33.83% |
| Operating Profit Margin (TTM) | 7.87% | 28.23% |
| Gross Profit Margin (TTM) | 91.04% | 43.72% |
Financial Strength
Current Ratio (MRQ)
RDDT
12.00
Interactive Media & Services Industry
- Max
- 3.92
- Q3
- 2.72
- Median
- 1.85
- Q1
- 1.20
- Min
- 0.25
RDDT’s Current Ratio of 12.00 is exceptionally high, placing it well outside the typical range for the Interactive Media & Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
TME
2.09
Entertainment Industry
- Max
- 6.76
- Q3
- 4.02
- Median
- 1.55
- Q1
- 0.86
- Min
- 0.38
TME’s Current Ratio of 2.09 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
RDDT
0.00
Interactive Media & Services Industry
- Max
- 0.85
- Q3
- 0.49
- Median
- 0.29
- Q1
- 0.04
- Min
- 0.00
Falling into the lower quartile for the Interactive Media & Services industry, RDDT’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
TME
0.09
Entertainment Industry
- Max
- 1.54
- Q3
- 0.77
- Median
- 0.16
- Q1
- 0.02
- Min
- 0.00
TME’s Debt-to-Equity Ratio of 0.09 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
RDDT
--
Interactive Media & Services Industry
- Max
- 23.65
- Q3
- 16.48
- Median
- 6.73
- Q1
- -0.87
- Min
- -3.62
Interest Coverage Ratio data for RDDT is currently unavailable.
TME
--
Entertainment Industry
- Max
- 87.17
- Q3
- 35.59
- Median
- 7.06
- Q1
- 1.13
- Min
- -44.74
Interest Coverage Ratio data for TME is currently unavailable.
Financial Strength at a Glance
| Symbol | RDDT | TME |
|---|---|---|
| Current Ratio (MRQ) | 12.00 | 2.09 |
| Quick Ratio (MRQ) | 11.89 | 1.86 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 0.09 |
| Interest Coverage Ratio (TTM) | -- | -- |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
RDDT
0.00%
Interactive Media & Services Industry
- Max
- 3.07%
- Q3
- 1.27%
- Median
- 0.28%
- Q1
- 0.00%
- Min
- 0.00%
RDDT currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
TME
0.00%
Entertainment Industry
- Max
- 2.90%
- Q3
- 1.29%
- Median
- 0.59%
- Q1
- 0.00%
- Min
- 0.00%
TME currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
RDDT
0.00%
Interactive Media & Services Industry
- Max
- 101.53%
- Q3
- 40.64%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
RDDT has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
TME
0.00%
Entertainment Industry
- Max
- 82.30%
- Q3
- 38.45%
- Median
- 29.74%
- Q1
- 0.00%
- Min
- 0.00%
TME has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | RDDT | TME |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
RDDT
175.27
Interactive Media & Services Industry
- Max
- 50.72
- Q3
- 41.60
- Median
- 25.84
- Q1
- 18.18
- Min
- 1.76
At 175.27, RDDT’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Interactive Media & Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
TME
23.21
Entertainment Industry
- Max
- 92.09
- Q3
- 54.51
- Median
- 28.92
- Q1
- 19.75
- Min
- 2.96
TME’s P/E Ratio of 23.21 is within the middle range for the Entertainment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
RDDT
22.73
Interactive Media & Services Industry
- Max
- 23.76
- Q3
- 11.40
- Median
- 7.69
- Q1
- 2.49
- Min
- 0.00
RDDT’s P/S Ratio of 22.73 is in the upper echelon for the Interactive Media & Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
TME
7.85
Entertainment Industry
- Max
- 12.34
- Q3
- 7.67
- Median
- 5.06
- Q1
- 2.72
- Min
- 0.67
TME’s P/S Ratio of 7.85 is in the upper echelon for the Entertainment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
RDDT
11.64
Interactive Media & Services Industry
- Max
- 16.71
- Q3
- 9.00
- Median
- 3.97
- Q1
- 2.19
- Min
- 0.33
RDDT’s P/B Ratio of 11.64 is in the upper tier for the Interactive Media & Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
TME
2.04
Entertainment Industry
- Max
- 22.84
- Q3
- 10.54
- Median
- 6.60
- Q1
- 2.30
- Min
- 0.65
TME’s P/B Ratio of 2.04 is in the lower quartile for the Entertainment industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | RDDT | TME |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 175.27 | 23.21 |
| Price-to-Sales Ratio (TTM) | 22.73 | 7.85 |
| Price-to-Book Ratio (MRQ) | 11.64 | 2.04 |
| Price-to-Free Cash Flow Ratio (TTM) | 95.55 | 27.00 |