TME vs. WMG: Tencent Music Entertainment vs. Warner Music Stock Comparison

November 11, 2026

How do Tencent Music Entertainment (TME) and Warner Music (WMG) 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 Warner Music (WMG) are both classified in the Movies & Entertainment sub-industry within the broader Entertainment industry, placing them in the closest GICS peer bucket.

Warner Music (WMG) 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 Warner Music (WMG)
Profile Item	TME	WMG
Name	Tencent Music Entertainment Group ADR	Warner Music Group Corp.
Country/Region	China	United States
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	15.58 billion USD	16.37 billion USD
Currency	USD	USD
Exchange	NYSE	Nasdaq
Listing Date	December 12, 2018	June 3, 2020
Security Type	ADR	Common Stock

Price Performance

Cumulative Growth

TME

WMG

GSPC

Tencent Music Entertainment (TME) vs. Warner Music (WMG), 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 Warner Music (WMG). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Tencent Music Entertainment (TME) and Warner Music (WMG). 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 Warner Music (WMG)
Metric	TME	WMG
Total Return (1Y)	-55.15%	6.98%
Total Return (3Y, Annualized)	9.39%	1.34%
Total Return (5Y, Annualized)	4.17%	-6.02%

Risk Profile

Drawdown History

TME

WMG

GSPC

Tencent Music Entertainment (TME) vs. Warner Music (WMG), 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 Warner Music (WMG). 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 Warner Music (WMG)
Metric	TME	WMG
Volatility (1Y, Annualized)	47.08%	35.24%
Beta (5Y)	0.70	1.31
Max Drawdown (5Y)	-69.85%	-53.17%
Avg. Volume (3M)	8.07M	2.05M

Risk-Adjusted Performance

Risk-Return Positioning

TME and WMG 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 Warner Music (WMG)
Metric	TME	WMG
Sharpe Ratio (1Y)	-1.26	0.08
Sortino Ratio (1Y)	-1.50	0.11

Profitability

ROE (TTM)

Warner Music (WMG) at 70.07% clears its industry range for ROE, a sharper capital-efficiency signal than Tencent Music Entertainment (TME) at 10.97%, which is closer to a typical peer reading.

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%

WMG

Media & Entertainment industry group

70.07%

WMG: 70.07%
Max: 49.92%
Q3: 17.95%
Median: 7.20%
Q1: -4.53%
Min: -26.31%

Tencent Music Entertainment (TME) vs. Warner Music (WMG): A comparison of their ROE against the Media & Entertainment industry group benchmark.

Net Margin (TTM)

Tencent Music Entertainment (TME) at 26.28% retains a top-quartile share of revenue as profit, ahead of Warner Music (WMG) at 9.20%, which keeps about the industry-typical share.

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%

WMG

Media & Entertainment industry group

9.20%

Max: 32.91%
Q3: 11.75%
WMG: 9.20%
Median: 5.04%
Q1: -4.17%
Min: -25.14%

Tencent Music Entertainment (TME) vs. Warner Music (WMG): A comparison of their net margin against the Media & Entertainment industry group benchmark.

Operating Margin (TTM)

Tencent Music Entertainment (TME) at 29.18% operates in the top operating margin quartile, ahead of Warner Music (WMG) at 16.74%, which runs around its industry’s norm.

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%

WMG

Media & Entertainment industry group

16.74%

Max: 40.16%
Q3: 18.72%
WMG: 16.74%
Median: 8.63%
Q1: 1.90%
Min: -22.08%

Tencent Music Entertainment (TME) vs. Warner Music (WMG): A comparison of their operating margin against the Media & Entertainment industry group benchmark.

Profitability Metrics

Profitability metrics for Tencent Music Entertainment (TME) and Warner Music (WMG)
Metric	TME	WMG
ROE (TTM)	10.97%	70.07%
ROA (TTM)	5.60%	7.65%
Net Margin (TTM)	26.28%	9.20%
Operating Margin (TTM)	29.18%	16.74%
Gross Margin (TTM)	44.32%	45.77%

Growth

Revenue Growth

Tencent Music Entertainment (TME) at 15.85% sits in the top revenue growth quartile, while Warner Music (WMG) at 4.37% is closer to the peer norm — faster top-line expansion for TME.

Tencent Music Entertainment (TME) vs. Warner Music (WMG): A comparison of their Revenue Growth across different time periods.

EPS Growth

Tencent Music Entertainment (TME) at 67.92% sits in the top EPS growth quartile, while Warner Music (WMG) at -16.87% is closer to the peer norm — faster per-share earnings growth for TME.

Tencent Music Entertainment (TME) vs. Warner Music (WMG): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Tencent Music Entertainment (TME) and Warner Music (WMG)
Metric	TME	WMG
Revenue Growth (YoY)	15.85%	4.37%
Revenue Growth (3Y CAGR)	5.10%	4.25%
EPS Growth (YoY)	67.92%	-16.87%
EPS Growth (3Y CAGR)	46.17%	-13.33%

Financial Strength

Current Ratio (MRQ)

Tencent Music Entertainment (TME) at 1.75 keeps current ratio within its industry’s typical mid-range, while Warner Music (WMG) at 0.73 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for WMG.

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

WMG

Media & Entertainment industry group

0.73

Max: 4.69
Q3: 2.53
Median: 1.52
Q1: 0.95
WMG: 0.73
Min: 0.28

Tencent Music Entertainment (TME) vs. Warner Music (WMG): A comparison of their current ratio against the Media & Entertainment industry group benchmark.

Debt / Equity (MRQ)

Tencent Music Entertainment (TME) at 0.21 is near its industry mid-range for debt-to-equity ratio, while Warner Music (WMG) at 4.53 sits above its benchmark range, pointing to a heavier debt load relative to equity.

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

WMG

Media & Entertainment industry group

4.53

WMG: 4.53
Max: 3.65
Q3: 1.69
Median: 0.46
Q1: 0.17
Min: 0.00

Tencent Music Entertainment (TME) vs. Warner Music (WMG): 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 Warner Music (WMG)
Metric	TME	WMG
Current Ratio (MRQ)	1.75	0.73
Debt / Equity (MRQ)	0.21	4.53
Net Debt / EBITDA	-1.22	2.57

Dividends

Dividend Yield (TTM)

Both Tencent Music Entertainment (TME) at 17.77% and Warner Music (WMG) at 2.38% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

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%

WMG

Media & Entertainment industry group

2.38%

WMG: 2.38%
Max: 1.33%
Q3: 0.65%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Tencent Music Entertainment (TME) vs. Warner Music (WMG): A comparison of their dividend yield against the Media & Entertainment industry group benchmark.

Dividend Payout Ratio (TTM)

Both Tencent Music Entertainment (TME) at 29.65% and Warner Music (WMG) at 60.80% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

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%

WMG

Media & Entertainment industry group

60.80%

Max: 71.43%
WMG: 60.80%
Q3: 28.98%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Tencent Music Entertainment (TME) vs. Warner Music (WMG): A comparison of their payout ratio against the Media & Entertainment industry group benchmark.

Dividend Metrics

Dividend metrics for Tencent Music Entertainment (TME) and Warner Music (WMG)
Metric	TME	WMG
Dividend Yield (TTM)	17.77%	2.38%
Dividend Payout Ratio (TTM)	29.65%	60.80%

Valuation

P/E Ratio (TTM)

Both Tencent Music Entertainment (TME) at 11.66 and Warner Music (WMG) at 25.04 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

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

WMG

Media & Entertainment industry group

25.04

Max: 51.21
Q3: 28.90
WMG: 25.04
Median: 17.98
Q1: 11.53
Min: 1.64

Tencent Music Entertainment (TME) vs. Warner Music (WMG): A comparison of their P/E ratio against the Media & Entertainment industry group benchmark.

P/S Ratio (TTM)

Tencent Music Entertainment (TME) at 0.46 sits in the cheaper P/S ratio quartile while Warner Music (WMG) at 2.24 prices around its industry’s middle — TME costs less per dollar of sales, though read it alongside growth and margins.

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

WMG

Media & Entertainment industry group

2.24

Max: 7.43
Q3: 3.82
WMG: 2.24
Median: 1.40
Q1: 0.70
Min: 0.00

Tencent Music Entertainment (TME) vs. Warner Music (WMG): 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 sits near its industry’s typical P/B ratio, while Warner Music (WMG) at 19.17 prices above its benchmark range — WMG looks rich relative to book.

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

WMG

Media & Entertainment industry group

19.17

WMG: 19.17
Max: 11.45
Q3: 5.30
Median: 1.84
Q1: 0.77
Min: -2.61

Tencent Music Entertainment (TME) vs. Warner Music (WMG): A comparison of their P/B ratio against the Media & Entertainment industry group benchmark.

Valuation Metrics

Valuation metrics for Tencent Music Entertainment (TME) and Warner Music (WMG)
Metric	TME	WMG
P/E Ratio (TTM)	11.66	25.04
P/S Ratio (TTM)	0.46	2.24
P/B Ratio (MRQ)	1.35	19.17
Free Cash Flow Yield (TTM)	45.80%	2.33%