TME vs. WMG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at TME and WMG, 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, WMG is a standard domestic listing.
| Symbol | TME | WMG |
|---|---|---|
| Company Name | Tencent Music Entertainment Group | Warner Music Group Corp. |
| Country | China | United States |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry | Entertainment | Entertainment |
| Market Capitalization | 39.19 billion USD | 16.91 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | December 12, 2018 | June 3, 2020 |
| Security Type | ADR | Common Stock |
Historical Performance
This chart compares the performance of TME and WMG 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.
Historical Performance at a Glance
| Symbol | TME | WMG |
|---|---|---|
| 5-Day Price Return | -1.65% | 0.59% |
| 13-Week Price Return | 49.94% | 18.35% |
| 26-Week Price Return | 96.71% | -7.60% |
| 52-Week Price Return | 135.90% | 12.13% |
| Month-to-Date Return | 19.58% | 10.87% |
| Year-to-Date Return | 121.15% | 4.65% |
| 10-Day Avg. Volume | 7.73M | 2.58M |
| 3-Month Avg. Volume | 6.70M | 1.74M |
| 3-Month Volatility | 37.24% | 23.72% |
| Beta | 0.51 | 1.30 |
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.
WMG
53.54%
Entertainment Industry
- Max
- 42.50%
- Q3
- 22.75%
- Median
- 12.88%
- Q1
- 7.15%
- Min
- -6.84%
WMG’s Return on Equity of 53.54% is exceptionally high, placing it well beyond the typical range for the Entertainment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
WMG
4.59%
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, WMG’s Net Profit Margin of 4.59% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
WMG
10.73%
Entertainment Industry
- Max
- 46.83%
- Q3
- 28.87%
- Median
- 15.26%
- Q1
- 8.95%
- Min
- -5.53%
WMG’s Operating Profit Margin of 10.73% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | TME | WMG |
|---|---|---|
| Return on Equity (TTM) | 10.55% | 53.54% |
| Return on Assets (TTM) | 7.89% | 3.16% |
| Net Profit Margin (TTM) | 33.83% | 4.59% |
| Operating Profit Margin (TTM) | 28.23% | 10.73% |
| Gross Profit Margin (TTM) | 43.72% | 46.64% |
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.
WMG
0.66
Entertainment Industry
- Max
- 6.80
- Q3
- 3.77
- Median
- 1.87
- Q1
- 0.86
- Min
- 0.39
WMG’s Current Ratio of 0.66 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
WMG
7.41
Entertainment Industry
- Max
- 1.65
- Q3
- 0.71
- Median
- 0.14
- Q1
- 0.04
- Min
- 0.00
With a Debt-to-Equity Ratio of 7.41, WMG operates with exceptionally high leverage compared to the Entertainment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
WMG
4.73
Entertainment Industry
- Max
- 62.11
- Q3
- 31.19
- Median
- 7.50
- Q1
- 2.02
- Min
- -6.33
WMG’s Interest Coverage Ratio of 4.73 is positioned comfortably within the norm for the Entertainment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | TME | WMG |
|---|---|---|
| Current Ratio (MRQ) | 2.09 | 0.66 |
| Quick Ratio (MRQ) | 1.86 | 0.45 |
| Debt-to-Equity Ratio (MRQ) | 0.09 | 7.41 |
| Interest Coverage Ratio (TTM) | -- | 4.73 |
Growth
Revenue Growth
EPS Growth
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.
WMG
2.42%
Entertainment Industry
- Max
- 2.54%
- Q3
- 1.29%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.42%, WMG offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.
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.
WMG
82.30%
Entertainment Industry
- Max
- 82.30%
- Q3
- 45.76%
- Median
- 29.16%
- Q1
- 0.00%
- Min
- 0.00%
WMG’s Dividend Payout Ratio of 82.30% is in the upper quartile for the Entertainment 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.
Dividend at a Glance
| Symbol | TME | WMG |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.42% |
| Dividend Payout Ratio (TTM) | 0.00% | 82.30% |
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.
WMG
52.44
Entertainment Industry
- Max
- 53.51
- Q3
- 45.31
- Median
- 33.16
- Q1
- 18.21
- Min
- 3.89
A P/E Ratio of 52.44 places WMG in the upper quartile for the Entertainment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
WMG
2.41
Entertainment Industry
- Max
- 12.81
- Q3
- 7.20
- Median
- 4.68
- Q1
- 3.32
- Min
- 0.79
In the lower quartile for the Entertainment industry, WMG’s P/S Ratio of 2.41 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
WMG
24.11
Entertainment Industry
- Max
- 17.11
- Q3
- 8.38
- Median
- 5.24
- Q1
- 2.18
- Min
- 0.67
At 24.11, WMG’s P/B Ratio is at an extreme premium to the Entertainment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | TME | WMG |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 25.02 | 52.44 |
| Price-to-Sales Ratio (TTM) | 8.46 | 2.41 |
| Price-to-Book Ratio (MRQ) | 2.06 | 24.11 |
| Price-to-Free Cash Flow Ratio (TTM) | 29.11 | 26.81 |