SPOT vs. TME: Spotify vs. Tencent Music Entertainment Stock Comparison
How do Spotify (SPOT) and Tencent Music Entertainment (TME) 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
Spotify (SPOT) and Tencent Music Entertainment (TME) are both classified in the Movies & Entertainment sub-industry within the broader Entertainment industry, placing them in the closest GICS peer bucket.
Spotify (SPOT) 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.
| Profile Item | SPOT | TME |
|---|---|---|
| Name | Spotify Technology S.A. | Tencent Music Entertainment Group ADR |
| Country/Region | Sweden | China |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry Group | Media & Entertainment | Media & Entertainment |
| GICS Industry | Entertainment | Entertainment |
| GICS Sub-Industry | Movies & Entertainment | Movies & Entertainment |
| Market Capitalization | 123.97 billion USD | 15.58 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | April 3, 2018 | December 12, 2018 |
| Security Type | Common Stock | ADR |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | SPOT | TME |
|---|---|---|
| Total Return (1Y) | -2.62% | -55.15% |
| Total Return (3Y, Annualized) | 52.24% | 9.39% |
| Total Return (5Y, Annualized) | 16.60% | 4.17% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | SPOT | TME |
|---|---|---|
| Volatility (1Y, Annualized) | 47.29% | 47.08% |
| Beta (5Y) | 1.45 | 0.70 |
| Max Drawdown (5Y) | -74.68% | -69.85% |
| Avg. Volume (3M) | 1.66M | 8.07M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | SPOT | TME |
|---|---|---|
| Sharpe Ratio (1Y) | -0.15 | -1.26 |
| Sortino Ratio (1Y) | -0.22 | -1.50 |
Profitability
ROE (TTM)
Spotify (SPOT) at 35.81% sits in the top ROE quartile, while Tencent Music Entertainment (TME) at 10.97% is closer to the peer norm — stronger capital efficiency for SPOT.
SPOT
Media & Entertainment industry group
35.81%
- Max
- 49.92%
- SPOT
- 35.81%
- Q3
- 17.95%
- Median
- 7.20%
- Q1
- -4.53%
- Min
- -26.31%
TME
Media & Entertainment industry group
10.97%
- Max
- 49.92%
- Q3
- 17.95%
- TME
- 10.97%
- Median
- 7.20%
- Q1
- -4.53%
- Min
- -26.31%
Net Margin (TTM)
For every dollar of sales, both Spotify (SPOT) at 15.73% 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.
SPOT
Media & Entertainment industry group
15.73%
- Max
- 32.91%
- SPOT
- 15.73%
- Q3
- 11.75%
- Median
- 5.04%
- Q1
- -4.17%
- Min
- -25.14%
TME
Media & Entertainment industry group
26.28%
- Max
- 32.91%
- TME
- 26.28%
- Q3
- 11.75%
- Median
- 5.04%
- Q1
- -4.17%
- Min
- -25.14%
Operating Margin (TTM)
Tencent Music Entertainment (TME) at 29.18% operates in the top operating margin quartile, ahead of Spotify (SPOT) at 13.52%, which runs around its industry’s norm.
SPOT
Media & Entertainment industry group
13.52%
- Max
- 40.16%
- Q3
- 18.72%
- SPOT
- 13.52%
- Median
- 8.63%
- Q1
- 1.90%
- Min
- -22.08%
TME
Media & Entertainment industry group
29.18%
- Max
- 40.16%
- TME
- 29.18%
- Q3
- 18.72%
- Median
- 8.63%
- Q1
- 1.90%
- Min
- -22.08%
Profitability Metrics
| Metric | SPOT | TME |
|---|---|---|
| ROE (TTM) | 35.81% | 10.97% |
| ROA (TTM) | 11.82% | 5.60% |
| Net Margin (TTM) | 15.73% | 26.28% |
| Operating Margin (TTM) | 13.52% | 29.18% |
| Gross Margin (TTM) | 33.12% | 44.32% |
Growth
Revenue Growth
Tencent Music Entertainment (TME) at 15.85% sits in the top revenue growth quartile, while Spotify (SPOT) at 9.65% is closer to the peer norm — faster top-line expansion for TME.
EPS Growth
Both Spotify (SPOT) at 91.09% and Tencent Music Entertainment (TME) at 67.92% sit in the top peer quartile for EPS growth, so each is compounding per-share earnings faster than typical industry peers.
Growth Metrics
| Metric | SPOT | TME |
|---|---|---|
| Revenue Growth (YoY) | 9.65% | 15.85% |
| Revenue Growth (3Y CAGR) | 13.59% | 5.10% |
| EPS Growth (YoY) | 91.09% | 67.92% |
| EPS Growth (3Y CAGR) | -- | 46.17% |
Financial Strength
Current Ratio (MRQ)
Both Spotify (SPOT) at 2.13 and Tencent Music Entertainment (TME) at 1.75 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.
SPOT
Media & Entertainment industry group
2.13
- Max
- 4.69
- Q3
- 2.53
- SPOT
- 2.13
- Median
- 1.52
- Q1
- 0.95
- Min
- 0.28
TME
Media & Entertainment industry group
1.75
- Max
- 4.69
- Q3
- 2.53
- TME
- 1.75
- Median
- 1.52
- Q1
- 0.95
- Min
- 0.28
Debt / Equity (MRQ)
Spotify (SPOT) at 0.05 keeps leverage in the lower industry quartile, while Tencent Music Entertainment (TME) at 0.21 runs a more typical debt-to-equity mix.
SPOT
Media & Entertainment industry group
0.05
- Max
- 3.65
- Q3
- 1.69
- Median
- 0.46
- Q1
- 0.17
- SPOT
- 0.05
- Min
- 0.00
TME
Media & Entertainment industry group
0.21
- Max
- 3.65
- Q3
- 1.69
- Median
- 0.46
- TME
- 0.21
- Q1
- 0.17
- Min
- 0.00
Financial Strength Metrics
| Metric | SPOT | TME |
|---|---|---|
| Current Ratio (MRQ) | 2.13 | 1.75 |
| Debt / Equity (MRQ) | 0.05 | 0.21 |
| Net Debt / EBITDA | -2.40 | -1.22 |
Dividends
Dividend Yield (TTM)
Spotify (SPOT) 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.
SPOT
Media & Entertainment industry group
0.00%
- Max
- 1.33%
- Q3
- 0.65%
- SPOT
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TME
Media & Entertainment industry group
17.77%
- TME
- 17.77%
- Max
- 1.33%
- Q3
- 0.65%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Spotify (SPOT) 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.
SPOT
Media & Entertainment industry group
0.00%
- Max
- 71.43%
- Q3
- 28.98%
- SPOT
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TME
Media & Entertainment industry group
29.65%
- Max
- 71.43%
- TME
- 29.65%
- Q3
- 28.98%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | SPOT | TME |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 17.77% |
| Dividend Payout Ratio (TTM) | 0.00% | 29.65% |
Valuation
P/E Ratio (TTM)
Tencent Music Entertainment (TME) at 11.66 is near its industry’s usual P/E ratio, while Spotify (SPOT) at 36.75 sits in the richer quartile — SPOT needs stronger growth or earnings quality to justify the premium.
SPOT
Media & Entertainment industry group
36.75
- Max
- 51.21
- SPOT
- 36.75
- Q3
- 28.90
- Median
- 17.98
- Q1
- 11.53
- Min
- 1.64
TME
Media & Entertainment industry group
11.66
- Max
- 51.21
- Q3
- 28.90
- Median
- 17.98
- TME
- 11.66
- Q1
- 11.53
- Min
- 1.64
P/S Ratio (TTM)
Tencent Music Entertainment (TME) at 0.46 looks cheap on sales in the lower P/S ratio quartile, while Spotify (SPOT) at 6.59 looks rich in the upper quartile — a clear gap in price per dollar of revenue.
SPOT
Media & Entertainment industry group
6.59
- Max
- 7.43
- SPOT
- 6.59
- Q3
- 3.82
- Median
- 1.40
- Q1
- 0.70
- Min
- 0.00
TME
Media & Entertainment industry group
0.46
- Max
- 7.43
- Q3
- 3.82
- Median
- 1.40
- Q1
- 0.70
- TME
- 0.46
- Min
- 0.00
P/B Ratio (MRQ)
Tencent Music Entertainment (TME) at 1.35 sits near its industry’s typical P/B ratio, while Spotify (SPOT) at 12.62 prices above its benchmark range — SPOT looks rich relative to book.
SPOT
Media & Entertainment industry group
12.62
- SPOT
- 12.62
- Max
- 11.45
- Q3
- 5.30
- Median
- 1.84
- Q1
- 0.77
- Min
- -2.61
TME
Media & Entertainment industry group
1.35
- Max
- 11.45
- Q3
- 5.30
- Median
- 1.84
- TME
- 1.35
- Q1
- 0.77
- Min
- -2.61
Valuation Metrics
| Metric | SPOT | TME |
|---|---|---|
| P/E Ratio (TTM) | 36.75 | 11.66 |
| P/S Ratio (TTM) | 6.59 | 0.46 |
| P/B Ratio (MRQ) | 12.62 | 1.35 |
| Free Cash Flow Yield (TTM) | 1.15% | 45.80% |