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

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

Company Profile

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

SymbolTMETU
Company NameTencent Music Entertainment GroupTELUS Corporation
CountryChinaCanada
GICS SectorCommunication ServicesCommunication Services
GICS IndustryEntertainmentDiversified Telecommunication Services
Market Capitalization35.72 billion USD24.14 billion USD
ExchangeNYSENYSE
Listing DateDecember 12, 2018June 11, 1996
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of TME and TU 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.

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

Historical Performance at a Glance

SymbolTMETU
5-Day Price Return-1.52%-0.23%
13-Week Price Return19.75%1.11%
26-Week Price Return62.08%8.51%
52-Week Price Return90.07%-3.39%
Month-to-Date Return-4.81%-3.18%
Year-to-Date Return105.64%12.47%
10-Day Avg. Volume6.47M4.85M
3-Month Avg. Volume6.31M3.63M
3-Month Volatility38.83%13.72%
Beta0.510.33

Profitability

Return on Equity (TTM)

TME

10.55%

Entertainment Industry

Max
42.50%
Q3
24.06%
Median
13.69%
Q1
5.35%
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.

TU

6.21%

Diversified Telecommunication Services Industry

Max
34.76%
Q3
16.39%
Median
9.92%
Q1
1.36%
Min
-10.54%

TU’s Return on Equity of 6.21% is on par with the norm for the Diversified Telecommunication Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

TME vs. TU: A comparison of their Return on Equity (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Net Profit Margin (TTM)

TME

33.83%

Entertainment Industry

Max
45.33%
Q3
24.40%
Median
13.94%
Q1
4.28%
Min
-23.67%

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.

TU

4.73%

Diversified Telecommunication Services Industry

Max
28.40%
Q3
13.17%
Median
7.18%
Q1
1.75%
Min
-14.73%

TU’s Net Profit Margin of 4.73% is aligned with the median group of its peers in the Diversified Telecommunication Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

TME vs. TU: A comparison of their Net Profit Margin (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Operating Profit Margin (TTM)

TME

28.23%

Entertainment Industry

Max
41.77%
Q3
28.26%
Median
16.13%
Q1
8.03%
Min
-3.93%

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.

TU

12.11%

Diversified Telecommunication Services Industry

Max
37.46%
Q3
22.24%
Median
14.86%
Q1
9.46%
Min
-9.42%

TU’s Operating Profit Margin of 12.11% is around the midpoint for the Diversified Telecommunication Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

TME vs. TU: A comparison of their Operating Profit Margin (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Profitability at a Glance

SymbolTMETU
Return on Equity (TTM)10.55%6.21%
Return on Assets (TTM)7.89%1.65%
Net Profit Margin (TTM)33.83%4.73%
Operating Profit Margin (TTM)28.23%12.11%
Gross Profit Margin (TTM)43.72%62.94%

Financial Strength

Current Ratio (MRQ)

TME

2.09

Entertainment Industry

Max
6.76
Q3
4.02
Median
1.55
Q1
0.86
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.

TU

0.86

Diversified Telecommunication Services Industry

Max
1.53
Q3
1.09
Median
0.91
Q1
0.70
Min
0.18

TU’s Current Ratio of 0.86 aligns with the median group of the Diversified Telecommunication Services industry, indicating that its short-term liquidity is in line with its sector peers.

TME vs. TU: A comparison of their Current Ratio (MRQ) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

TME

0.09

Entertainment Industry

Max
1.54
Q3
0.77
Median
0.16
Q1
0.02
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.

TU

2.18

Diversified Telecommunication Services Industry

Max
3.82
Q3
2.13
Median
1.40
Q1
0.71
Min
0.00

TU’s leverage is in the upper quartile of the Diversified Telecommunication Services industry, with a Debt-to-Equity Ratio of 2.18. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

TME vs. TU: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Interest Coverage Ratio (TTM)

TME

--

Entertainment Industry

Max
87.17
Q3
35.59
Median
7.06
Q1
1.13
Min
-44.74

Interest Coverage Ratio data for TME is currently unavailable.

TU

1.88

Diversified Telecommunication Services Industry

Max
16.05
Q3
8.06
Median
3.53
Q1
1.36
Min
-2.60

TU’s Interest Coverage Ratio of 1.88 is positioned comfortably within the norm for the Diversified Telecommunication Services industry, indicating a standard and healthy capacity to cover its interest payments.

TME vs. TU: A comparison of their Interest Coverage Ratio (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Financial Strength at a Glance

SymbolTMETU
Current Ratio (MRQ)2.090.86
Quick Ratio (MRQ)1.860.76
Debt-to-Equity Ratio (MRQ)0.092.18
Interest Coverage Ratio (TTM)--1.88

Growth

Revenue Growth

TME vs. TU: 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

TME vs. TU: 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)

TME

0.00%

Entertainment Industry

Max
2.90%
Q3
1.29%
Median
0.59%
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.

TU

4.69%

Diversified Telecommunication Services Industry

Max
10.69%
Q3
5.66%
Median
4.23%
Q1
1.76%
Min
0.00%

TU’s Dividend Yield of 4.69% is consistent with its peers in the Diversified Telecommunication Services industry, providing a dividend return that is standard for its sector.

TME vs. TU: A comparison of their Dividend Yield (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Dividend Payout Ratio (TTM)

TME

0.00%

Entertainment Industry

Max
82.30%
Q3
38.45%
Median
29.74%
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.

TU

163.46%

Diversified Telecommunication Services Industry

Max
273.77%
Q3
134.61%
Median
76.89%
Q1
41.79%
Min
0.00%

TU’s Dividend Payout Ratio of 163.46% is in the upper quartile for the Diversified Telecommunication Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

TME vs. TU: A comparison of their Dividend Payout Ratio (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Dividend at a Glance

SymbolTMETU
Dividend Yield (TTM)0.00%4.69%
Dividend Payout Ratio (TTM)0.00%163.46%

Valuation

Price-to-Earnings Ratio (TTM)

TME

23.21

Entertainment Industry

Max
92.09
Q3
54.51
Median
28.92
Q1
19.75
Min
2.96

TME’s P/E Ratio of 23.21 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.

TU

34.83

Diversified Telecommunication Services Industry

Max
42.43
Q3
27.51
Median
18.10
Q1
13.52
Min
4.10

A P/E Ratio of 34.83 places TU in the upper quartile for the Diversified Telecommunication Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

TME vs. TU: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Price-to-Sales Ratio (TTM)

TME

7.85

Entertainment Industry

Max
12.34
Q3
7.67
Median
5.06
Q1
2.72
Min
0.67

TME’s P/S Ratio of 7.85 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.

TU

1.65

Diversified Telecommunication Services Industry

Max
4.55
Q3
2.45
Median
1.74
Q1
0.98
Min
0.36

TU’s P/S Ratio of 1.65 aligns with the market consensus for the Diversified Telecommunication Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

TME vs. TU: A comparison of their Price-to-Sales Ratio (TTM) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Price-to-Book Ratio (MRQ)

TME

2.04

Entertainment Industry

Max
22.84
Q3
10.54
Median
6.60
Q1
2.30
Min
0.65

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.

TU

2.18

Diversified Telecommunication Services Industry

Max
7.27
Q3
3.97
Median
2.45
Q1
1.25
Min
0.27

TU’s P/B Ratio of 2.18 is within the conventional range for the Diversified Telecommunication Services 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 vs. TU: A comparison of their Price-to-Book Ratio (MRQ) against their respective Entertainment and Diversified Telecommunication Services industry benchmarks.

Valuation at a Glance

SymbolTMETU
Price-to-Earnings Ratio (TTM)23.2134.83
Price-to-Sales Ratio (TTM)7.851.65
Price-to-Book Ratio (MRQ)2.042.18
Price-to-Free Cash Flow Ratio (TTM)27.0031.68