SPOT vs. TME: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at SPOT and TME, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
SPOT 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 | SPOT | TME |
|---|---|---|
| Company Name | Spotify Technology S.A. | Tencent Music Entertainment Group |
| Country | Luxembourg | China |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry | Entertainment | Entertainment |
| Market Capitalization | 132.09 billion USD | 31.79 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | April 3, 2018 | December 12, 2018 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of SPOT 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 | SPOT | TME |
|---|---|---|
| 5-Day Price Return | 2.06% | -8.92% |
| 13-Week Price Return | -13.24% | -25.91% |
| 26-Week Price Return | 2.53% | 11.24% |
| 52-Week Price Return | 36.03% | 74.84% |
| Month-to-Date Return | -2.99% | -15.32% |
| Year-to-Date Return | 42.11% | 66.52% |
| 10-Day Avg. Volume | 2.18M | 9.03M |
| 3-Month Avg. Volume | 1.83M | 5.98M |
| 3-Month Volatility | 26.71% | 35.72% |
| Beta | 1.66 | 0.48 |
Profitability
Return on Equity (TTM)
SPOT
21.47%
Entertainment Industry
- Max
- 41.86%
- Q3
- 22.17%
- Median
- 13.67%
- Q1
- 4.55%
- Min
- -17.95%
SPOT’s Return on Equity of 21.47% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.
TME
10.55%
Entertainment Industry
- Max
- 41.86%
- Q3
- 22.17%
- Median
- 13.67%
- Q1
- 4.55%
- 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)
SPOT
8.32%
Entertainment Industry
- Max
- 45.33%
- Q3
- 29.05%
- Median
- 15.14%
- Q1
- 4.44%
- Min
- -21.70%
SPOT’s Net Profit Margin of 8.32% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.
TME
34.08%
Entertainment Industry
- Max
- 45.33%
- Q3
- 29.05%
- Median
- 15.14%
- Q1
- 4.44%
- Min
- -21.70%
A Net Profit Margin of 34.08% 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)
SPOT
11.68%
Entertainment Industry
- Max
- 43.42%
- Q3
- 28.90%
- Median
- 18.77%
- Q1
- 9.11%
- Min
- -4.88%
SPOT’s Operating Profit Margin of 11.68% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.
TME
28.82%
Entertainment Industry
- Max
- 43.42%
- Q3
- 28.90%
- Median
- 18.77%
- Q1
- 9.11%
- Min
- -4.88%
TME’s Operating Profit Margin of 28.82% 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 | SPOT | TME |
|---|---|---|
| Return on Equity (TTM) | 21.47% | 10.55% |
| Return on Assets (TTM) | 10.63% | 7.89% |
| Net Profit Margin (TTM) | 8.32% | 34.08% |
| Operating Profit Margin (TTM) | 11.68% | 28.82% |
| Gross Profit Margin (TTM) | 31.75% | 43.90% |
Financial Strength
Current Ratio (MRQ)
SPOT
1.61
Entertainment Industry
- Max
- 6.76
- Q3
- 4.06
- Median
- 1.58
- Q1
- 0.87
- Min
- 0.38
SPOT’s Current Ratio of 1.61 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
- 6.76
- Q3
- 4.06
- Median
- 1.58
- Q1
- 0.87
- 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)
SPOT
0.28
Entertainment Industry
- Max
- 1.54
- Q3
- 0.80
- Median
- 0.15
- Q1
- 0.01
- Min
- 0.00
SPOT’s Debt-to-Equity Ratio of 0.28 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.
TME
0.09
Entertainment Industry
- Max
- 1.54
- Q3
- 0.80
- Median
- 0.15
- Q1
- 0.01
- 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)
SPOT
38.25
Entertainment Industry
- Max
- 62.11
- Q3
- 35.59
- Median
- 7.06
- Q1
- 1.13
- Min
- -44.74
SPOT’s Interest Coverage Ratio of 38.25 is in the upper quartile for the Entertainment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
TME
--
Entertainment Industry
- Max
- 62.11
- 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 | SPOT | TME |
|---|---|---|
| Current Ratio (MRQ) | 1.61 | 2.09 |
| Quick Ratio (MRQ) | 1.61 | 1.86 |
| Debt-to-Equity Ratio (MRQ) | 0.28 | 0.09 |
| Interest Coverage Ratio (TTM) | 38.25 | -- |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
SPOT
0.00%
Entertainment Industry
- Max
- 2.71%
- Q3
- 1.23%
- Median
- 0.60%
- Q1
- 0.00%
- Min
- 0.00%
SPOT 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
- 2.71%
- Q3
- 1.23%
- Median
- 0.60%
- 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)
SPOT
0.00%
Entertainment Industry
- Max
- 82.30%
- Q3
- 37.50%
- Median
- 24.18%
- Q1
- 0.00%
- Min
- 0.00%
SPOT 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
- 37.50%
- Median
- 24.18%
- 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 | SPOT | TME |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
SPOT
80.06
Entertainment Industry
- Max
- 80.06
- Q3
- 53.00
- Median
- 28.44
- Q1
- 18.00
- Min
- 2.61
A P/E Ratio of 80.06 places SPOT in the upper quartile for the Entertainment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
TME
17.66
Entertainment Industry
- Max
- 80.06
- Q3
- 53.00
- Median
- 28.44
- Q1
- 18.00
- Min
- 2.61
In the lower quartile for the Entertainment industry, TME’s P/E Ratio of 17.66 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
SPOT
6.66
Entertainment Industry
- Max
- 10.86
- Q3
- 6.98
- Median
- 4.25
- Q1
- 2.56
- Min
- 0.51
SPOT’s P/S Ratio of 6.66 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
TME
6.02
Entertainment Industry
- Max
- 10.86
- Q3
- 6.98
- Median
- 4.25
- Q1
- 2.56
- Min
- 0.51
TME’s P/S Ratio of 6.02 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
SPOT
15.83
Entertainment Industry
- Max
- 19.63
- Q3
- 10.35
- Median
- 5.18
- Q1
- 2.07
- Min
- 0.59
SPOT’s P/B Ratio of 15.83 is in the upper tier for the Entertainment 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
- 19.63
- Q3
- 10.35
- Median
- 5.18
- Q1
- 2.07
- Min
- 0.59
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 | SPOT | TME |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 80.06 | 17.66 |
| Price-to-Sales Ratio (TTM) | 6.66 | 6.02 |
| Price-to-Book Ratio (MRQ) | 15.83 | 2.04 |
| Price-to-Free Cash Flow Ratio (TTM) | 38.59 | 18.50 |