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

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Here’s a clear look at TME and WBD, 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, WBD is a standard domestic listing.

SymbolTMEWBD
Company NameTencent Music Entertainment GroupWarner Bros. Discovery, Inc.
CountryChinaUnited States
GICS SectorCommunication ServicesCommunication Services
GICS IndustryEntertainmentEntertainment
Market Capitalization39.41 billion USD29.81 billion USD
ExchangeNYSENasdaqGS
Listing DateDecember 12, 2018July 8, 2005
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of TME and WBD 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. WBD: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolTMEWBD
5-Day Price Return1.70%4.15%
13-Week Price Return51.92%33.48%
26-Week Price Return96.34%10.56%
52-Week Price Return150.93%60.53%
Month-to-Date Return22.53%-8.58%
Year-to-Date Return126.61%13.91%
10-Day Avg. Volume7.22M42.38M
3-Month Avg. Volume6.52M53.88M
3-Month Volatility37.29%45.82%
Beta0.521.65

Profitability

Return on Equity (TTM)

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.

WBD

2.21%

Entertainment Industry

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

WBD’s Return on Equity of 2.21% is in the lower quartile for the Entertainment industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

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

Net Profit Margin (TTM)

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.

WBD

2.00%

Entertainment Industry

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

Falling into the lower quartile for the Entertainment industry, WBD’s Net Profit Margin of 2.00% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

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

Operating Profit Margin (TTM)

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.

WBD

8.43%

Entertainment Industry

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

WBD’s Operating Profit Margin of 8.43% is in the lower quartile for the Entertainment industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

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

Profitability at a Glance

SymbolTMEWBD
Return on Equity (TTM)10.55%2.21%
Return on Assets (TTM)7.89%0.74%
Net Profit Margin (TTM)33.83%2.00%
Operating Profit Margin (TTM)28.23%8.43%
Gross Profit Margin (TTM)43.72%44.43%

Financial Strength

Current Ratio (MRQ)

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.

WBD

1.04

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

WBD’s Current Ratio of 1.04 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

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

Debt-to-Equity Ratio (MRQ)

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.

WBD

0.96

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

WBD’s leverage is in the upper quartile of the Entertainment industry, with a Debt-to-Equity Ratio of 0.96. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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

Interest Coverage Ratio (TTM)

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.

WBD

-4.48

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

WBD has a negative Interest Coverage Ratio of -4.48. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

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

Financial Strength at a Glance

SymbolTMEWBD
Current Ratio (MRQ)2.091.04
Quick Ratio (MRQ)1.860.79
Debt-to-Equity Ratio (MRQ)0.090.96
Interest Coverage Ratio (TTM)---4.48

Growth

Revenue Growth

TME vs. WBD: 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. WBD: 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
2.54%
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.

WBD

0.00%

Entertainment Industry

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

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

Dividend Payout Ratio (TTM)

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.

WBD

0.00%

Entertainment Industry

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

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

Dividend at a Glance

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

Valuation

Price-to-Earnings Ratio (TTM)

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.

WBD

37.23

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

WBD’s P/E Ratio of 37.23 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.

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

Price-to-Sales Ratio (TTM)

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.

WBD

0.74

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

WBD’s P/S Ratio of 0.74 falls below the typical floor for the Entertainment industry. This could suggest the stock is overlooked or deeply undervalued relative to its sales, but may also reflect significant market concerns about its future.

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

Price-to-Book Ratio (MRQ)

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.

WBD

0.79

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

WBD’s P/B Ratio of 0.79 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.

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

Valuation at a Glance

SymbolTMEWBD
Price-to-Earnings Ratio (TTM)25.0237.23
Price-to-Sales Ratio (TTM)8.460.74
Price-to-Book Ratio (MRQ)2.060.79
Price-to-Free Cash Flow Ratio (TTM)29.117.03