Seek Returns logo

ROKU vs. TME: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ROKU and TME, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

ROKU is a standard domestic listing, while TME trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolROKUTME
Company NameRoku, Inc.Tencent Music Entertainment Group
CountryUnited StatesChina
GICS SectorCommunication ServicesCommunication Services
GICS IndustryEntertainmentEntertainment
Market Capitalization13.03 billion USD39.19 billion USD
ExchangeNasdaqGSNYSE
Listing DateSeptember 28, 2017December 12, 2018
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of ROKU 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.

ROKU vs. TME: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolROKUTME
5-Day Price Return1.10%-1.65%
13-Week Price Return24.90%49.94%
26-Week Price Return1.92%96.71%
52-Week Price Return42.79%135.90%
Month-to-Date Return-6.04%19.58%
Year-to-Date Return19.01%121.15%
10-Day Avg. Volume3.57M7.73M
3-Month Avg. Volume3.98M6.70M
3-Month Volatility50.79%37.24%
Beta2.160.51

Profitability

Return on Equity (TTM)

ROKU

-2.44%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

ROKU has a negative Return on Equity of -2.44%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

TME

10.55%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

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.

ROKU vs. TME: A comparison of their Return on Equity (TTM) against the Entertainment industry benchmark.

Net Profit Margin (TTM)

ROKU

-1.40%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

ROKU has a negative Net Profit Margin of -1.40%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

TME

33.83%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

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.

ROKU vs. TME: A comparison of their Net Profit Margin (TTM) against the Entertainment industry benchmark.

Operating Profit Margin (TTM)

ROKU

-3.55%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

ROKU has a negative Operating Profit Margin of -3.55%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

TME

28.23%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

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.

ROKU vs. TME: A comparison of their Operating Profit Margin (TTM) against the Entertainment industry benchmark.

Profitability at a Glance

SymbolROKUTME
Return on Equity (TTM)-2.44%10.55%
Return on Assets (TTM)-1.44%7.89%
Net Profit Margin (TTM)-1.40%33.83%
Operating Profit Margin (TTM)-3.55%28.23%
Gross Profit Margin (TTM)44.04%43.72%

Financial Strength

Current Ratio (MRQ)

ROKU

2.85

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

ROKU’s Current Ratio of 2.85 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

TME

2.09

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

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.

ROKU vs. TME: A comparison of their Current Ratio (MRQ) against the Entertainment industry benchmark.

Debt-to-Equity Ratio (MRQ)

ROKU

0.00

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

Falling into the lower quartile for the Entertainment industry, ROKU’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
1.65
Q3
0.71
Median
0.14
Q1
0.04
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.

ROKU vs. TME: A comparison of their Debt-to-Equity Ratio (MRQ) against the Entertainment industry benchmark.

Interest Coverage Ratio (TTM)

ROKU

-93.67

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

ROKU has a negative Interest Coverage Ratio of -93.67. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

TME

--

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

Interest Coverage Ratio data for TME is currently unavailable.

ROKU vs. TME: A comparison of their Interest Coverage Ratio (TTM) against the Entertainment industry benchmark.

Financial Strength at a Glance

SymbolROKUTME
Current Ratio (MRQ)2.852.09
Quick Ratio (MRQ)2.601.86
Debt-to-Equity Ratio (MRQ)0.000.09
Interest Coverage Ratio (TTM)-93.67--

Growth

Revenue Growth

ROKU vs. TME: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ROKU vs. TME: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ROKU

0.00%

Entertainment Industry

Max
2.54%
Q3
1.29%
Median
0.61%
Q1
0.00%
Min
0.00%

ROKU 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
2.54%
Q3
1.29%
Median
0.61%
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.

ROKU vs. TME: A comparison of their Dividend Yield (TTM) against the Entertainment industry benchmark.

Dividend Payout Ratio (TTM)

ROKU

0.00%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
Q1
0.00%
Min
0.00%

ROKU 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
45.76%
Median
29.16%
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.

ROKU vs. TME: A comparison of their Dividend Payout Ratio (TTM) against the Entertainment industry benchmark.

Dividend at a Glance

SymbolROKUTME
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ROKU

--

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

P/E Ratio data for ROKU is currently unavailable.

TME

25.02

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

TME’s P/E Ratio of 25.02 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.

ROKU vs. TME: A comparison of their Price-to-Earnings Ratio (TTM) against the Entertainment industry benchmark.

Price-to-Sales Ratio (TTM)

ROKU

2.98

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

In the lower quartile for the Entertainment industry, ROKU’s P/S Ratio of 2.98 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

TME

8.46

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

TME’s P/S Ratio of 8.46 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.

ROKU vs. TME: A comparison of their Price-to-Sales Ratio (TTM) against the Entertainment industry benchmark.

Price-to-Book Ratio (MRQ)

ROKU

4.98

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

ROKU’s P/B Ratio of 4.98 is within the conventional range for the Entertainment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

TME

2.06

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

TME’s P/B Ratio of 2.06 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.

ROKU vs. TME: A comparison of their Price-to-Book Ratio (MRQ) against the Entertainment industry benchmark.

Valuation at a Glance

SymbolROKUTME
Price-to-Earnings Ratio (TTM)--25.02
Price-to-Sales Ratio (TTM)2.988.46
Price-to-Book Ratio (MRQ)4.982.06
Price-to-Free Cash Flow Ratio (TTM)33.6429.11