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TME vs. TTWO: Tencent Music Entertainment vs. Take-Two Interactive Software Stock Comparison

How do Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO) 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

Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO) both belong to the Entertainment industry, though TME is classified under Movies & Entertainment while TTWO falls under Interactive Home Entertainment.

Take-Two Interactive Software (TTWO) 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.

Company profile comparison for Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO)
Profile ItemTMETTWO
NameTencent Music Entertainment Group ADRTake-Two Interactive Software, Inc.
Country/RegionChinaUnited States
GICS SectorCommunication ServicesCommunication Services
GICS Industry GroupMedia & EntertainmentMedia & Entertainment
GICS IndustryEntertainmentEntertainment
GICS Sub-IndustryMovies & EntertainmentInteractive Home Entertainment
Market Capitalization15.58 billion USD40.18 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateDecember 12, 2018April 15, 1997
Security TypeADRCommon Stock

Price Performance

Cumulative Growth

TME
TTWO
GSPC
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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO)
MetricTMETTWO
Total Return (1Y)-55.15%-9.11%
Total Return (3Y, Annualized)9.39%12.95%
Total Return (5Y, Annualized)4.17%2.45%

Risk Profile

Drawdown History

TME
TTWO
GSPC
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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO)
MetricTMETTWO
Volatility (1Y, Annualized)47.08%33.59%
Beta (5Y)0.700.88
Max Drawdown (5Y)-69.85%-50.18%
Avg. Volume (3M)8.07M2.58M

Risk-Adjusted Performance

Risk-Return Positioning

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TME and TTWO are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO)
MetricTMETTWO
Sharpe Ratio (1Y)-1.26-0.40
Sortino Ratio (1Y)-1.50-0.57

Profitability

ROE (TTM)

Take-Two Interactive Software (TTWO) reports a negative ROE of -9.04%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Tencent Music Entertainment (TME) reports 10.97%, ranking against industry peers normally.

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%

TTWO

Media & Entertainment industry group

-9.04%

Max
49.92%
Q3
17.95%
Median
7.20%
Q1
-4.53%
TTWO
-9.04%
Min
-26.31%
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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO): A comparison of their ROE against the Media & Entertainment industry group benchmark.

Net Margin (TTM)

Take-Two Interactive Software (TTWO) reports a negative net margin of -4.79%, usually indicating a net loss over the period. Meanwhile Tencent Music Entertainment (TME) reports 26.28%, ranking against industry peers normally.

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%

TTWO

Media & Entertainment industry group

-4.79%

Max
32.91%
Q3
11.75%
Median
5.04%
Q1
-4.17%
TTWO
-4.79%
Min
-25.14%
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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO): A comparison of their net margin against the Media & Entertainment industry group benchmark.

Operating Margin (TTM)

Tencent Music Entertainment (TME) at 29.18% carries a top-quartile operating margin, while Take-Two Interactive Software (TTWO) at 0.52% operates in the bottom quartile.

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%

TTWO

Media & Entertainment industry group

0.52%

Max
40.16%
Q3
18.72%
Median
8.63%
Q1
1.90%
TTWO
0.52%
Min
-22.08%
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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO): A comparison of their operating margin against the Media & Entertainment industry group benchmark.

Profitability Metrics

Profitability metrics for Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO)
MetricTMETTWO
ROE (TTM)10.97%-9.04%
ROA (TTM)5.60%-0.62%
Net Margin (TTM)26.28%-4.79%
Operating Margin (TTM)29.18%0.52%
Gross Margin (TTM)44.32%57.13%

Growth

Revenue Growth

Both Tencent Music Entertainment (TME) at 15.85% and Take-Two Interactive Software (TTWO) at 18.16% sit in the top peer quartile for revenue growth, so each is growing its top line faster than typical industry peers.

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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO): A comparison of their Revenue Growth across different time periods.

EPS Growth

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

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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO)
MetricTMETTWO
Revenue Growth (YoY)15.85%18.16%
Revenue Growth (3Y CAGR)5.10%7.56%
EPS Growth (YoY)67.92%--
EPS Growth (3Y CAGR)46.17%--

Financial Strength

Current Ratio (MRQ)

Both Tencent Music Entertainment (TME) at 1.75 and Take-Two Interactive Software (TTWO) at 1.06 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

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

TTWO

Media & Entertainment industry group

1.06

Max
4.69
Q3
2.53
Median
1.52
TTWO
1.06
Q1
0.95
Min
0.28
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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO): A comparison of their current ratio against the Media & Entertainment industry group benchmark.

Debt / Equity (MRQ)

Both Tencent Music Entertainment (TME) at 0.21 and Take-Two Interactive Software (TTWO) at 0.82 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

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

TTWO

Media & Entertainment industry group

0.82

Max
3.65
Q3
1.69
TTWO
0.82
Median
0.46
Q1
0.17
Min
0.00
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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO): A comparison of their debt-to-equity ratio against the Media & Entertainment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO)
MetricTMETTWO
Current Ratio (MRQ)1.751.06
Debt / Equity (MRQ)0.210.82
Net Debt / EBITDA-1.221.46

Dividends

Dividend Yield (TTM)

Take-Two Interactive Software (TTWO) 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.

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%

TTWO

Media & Entertainment industry group

0.00%

Max
1.33%
Q3
0.65%
TTWO
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO): A comparison of their dividend yield against the Media & Entertainment industry group benchmark.

Dividend Payout Ratio (TTM)

Take-Two Interactive Software (TTWO) 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.

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%

TTWO

Media & Entertainment industry group

0.00%

Max
71.43%
Q3
28.98%
TTWO
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO): A comparison of their payout ratio against the Media & Entertainment industry group benchmark.

Dividend Metrics

Dividend metrics for Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO)
MetricTMETTWO
Dividend Yield (TTM)17.77%0.00%
Dividend Payout Ratio (TTM)29.65%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: Tencent Music Entertainment (TME) trades at 11.66 times trailing earnings, ranked against its peers, while Take-Two Interactive Software (TTWO) has no P/E ratio this period.

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

TTWO

Media & Entertainment industry group

--

Max
51.21
Q3
28.90
Median
17.98
Q1
11.53
Min
1.64
TTWO
--
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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO): TTWO does not report P/E ratio, so it has no value marker; TME is benchmarked against the Media & Entertainment industry group.

P/S Ratio (TTM)

Tencent Music Entertainment (TME) at 0.46 looks cheap on sales in the lower P/S ratio quartile, while Take-Two Interactive Software (TTWO) at 6.01 looks rich in the upper quartile — a clear gap in price per dollar of revenue.

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

TTWO

Media & Entertainment industry group

6.01

Max
7.43
TTWO
6.01
Q3
3.82
Median
1.40
Q1
0.70
Min
0.00
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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO): A comparison of their P/S ratio against the Media & Entertainment industry group benchmark.

P/B Ratio (MRQ)

Tencent Music Entertainment (TME) at 1.35 is valued about in line with its industry on P/B ratio, while Take-Two Interactive Software (TTWO) at 11.14 carries an above-peer premium to book — TTWO is pricier on assets.

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

TTWO

Media & Entertainment industry group

11.14

Max
11.45
TTWO
11.14
Q3
5.30
Median
1.84
Q1
0.77
Min
-2.61
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Tencent Music Entertainment (TME) vs. Take-Two Interactive Software (TTWO): A comparison of their P/B ratio against the Media & Entertainment industry group benchmark.

Valuation Metrics

Valuation metrics for Tencent Music Entertainment (TME) and Take-Two Interactive Software (TTWO)
MetricTMETTWO
P/E Ratio (TTM)11.66--
P/S Ratio (TTM)0.466.01
P/B Ratio (MRQ)1.3511.14
Free Cash Flow Yield (TTM)45.80%3.13%