RDDT vs. TME: Reddit vs. Tencent Music Entertainment Stock Comparison

Company Profile

Reddit (RDDT) and Tencent Music Entertainment (TME) both fall under the Media & Entertainment industry group, but RDDT is classified in Interactive Media & Services while TME is classified in Entertainment.

Tencent Music Entertainment (TME) has been public since December 12, 2018, giving it a longer listed trading history, while Reddit (RDDT) listed on March 21, 2024 and still has a shorter public-market record.

Reddit (RDDT) trades as ordinary local shares, while Tencent Music Entertainment (TME) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Reddit (RDDT) carries a highly aggressive beta of 2.17, indicating much higher sensitivity to broad-market moves, whereas Tencent Music Entertainment (TME) is closer to market-like at 0.70 — a noticeable difference in market-sensitivity profile.

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Reddit (RDDT) at 32.03% sits in the top ROE quartile, while Tencent Music Entertainment (TME) at 10.97% is closer to the peer norm — stronger capital efficiency for RDDT.

For every dollar of sales, both Reddit (RDDT) at 32.11% 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.

Both Reddit (RDDT) at 29.23% 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.

Profitability Metrics

Growth

Both companies are growing quickly, but Reddit (RDDT) at 69.40% is the standout with revenue growth above its industry range; Tencent Music Entertainment (TME) at 15.85% also sits in the top quartile.

Only one side can be read here: Tencent Music Entertainment (TME) reports EPS growth of 67.92%, ranked against its industry; Reddit (RDDT) has no EPS growth figure this period.

Growth Metrics

Financial Strength

Tencent Music Entertainment (TME) at 1.75 keeps current ratio within its industry’s typical mid-range, while Reddit (RDDT) at 10.80 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

Reddit (RDDT) at 0.01 keeps leverage in the lower industry quartile, while Tencent Music Entertainment (TME) at 0.21 runs a more typical debt-to-equity mix.

Financial Strength Metrics

Dividends

Reddit (RDDT) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Tencent Music Entertainment (TME) reports a yield of 17.77%, ranking against industry peers normally.

Reddit (RDDT) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Tencent Music Entertainment (TME) reports a payout of 29.65%, ranking against industry peers normally.

Dividend Metrics

Valuation

Both Reddit (RDDT) at 19.41 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.

Tencent Music Entertainment (TME) at 0.46 looks cheap on sales in the lower P/S ratio quartile, while Reddit (RDDT) at 5.94 looks rich in the upper quartile — a clear gap in price per dollar of revenue.

On P/B ratio, both Reddit (RDDT) at 5.13 and Tencent Music Entertainment (TME) at 1.35 are valued close to their industries’ norm against book — neither stands out from peers.

Valuation Metrics