Tencent Music Entertainment Group (TME) & Its Rivals Head to Head Analysis

Tencent Music Entertainment Group (NYSE:TME) is one of 184 public companies in the “Entertainment” industry, but how does it weigh in compared to its competitors? We will compare Tencent Music Entertainment Group to related businesses based on the strength of its risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Dividends

Tencent Music Entertainment Group pays an annual dividend of $0.23 per share and has a dividend yield of 2.4%. Tencent Music Entertainment Group pays out 28.4% of its earnings in the form of a dividend. As a group, “Entertainment” companies pay a dividend yield of 16.4% and pay out 79.5% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Tencent Music Entertainment Group and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tencent Music Entertainment Group	$4.71 billion	$1.54 billion	11.76
Tencent Music Entertainment Group Competitors	$6.02 billion	$73.17 million	14.17

Tencent Music Entertainment Group’s competitors have higher revenue, but lower earnings than Tencent Music Entertainment Group. Tencent Music Entertainment Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Tencent Music Entertainment Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tencent Music Entertainment Group	26.27%	11.53%	8.87%
Tencent Music Entertainment Group Competitors	11.06%	-25.84%	-2.42%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Tencent Music Entertainment Group and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tencent Music Entertainment Group	0	8	3	1	2.42
Tencent Music Entertainment Group Competitors	1876	4510	9623	255	2.51

Tencent Music Entertainment Group currently has a consensus target price of $16.43, indicating a potential upside of 72.42%. As a group, “Entertainment” companies have a potential upside of 18.46%. Given Tencent Music Entertainment Group’s higher possible upside, analysts clearly believe Tencent Music Entertainment Group is more favorable than its competitors.

Risk and Volatility

Tencent Music Entertainment Group has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Tencent Music Entertainment Group’s competitors have a beta of 1.00, indicating that their average share price is 0% less volatile than the S&P 500.

Insider & Institutional Ownership

24.3% of Tencent Music Entertainment Group shares are held by institutional investors. Comparatively, 36.3% of shares of all “Entertainment” companies are held by institutional investors. 23.9% of shares of all “Entertainment” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Tencent Music Entertainment Group competitors beat Tencent Music Entertainment Group on 8 of the 15 factors compared.

About Tencent Music Entertainment Group

Tencent Music Entertainment Group operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with a diverse audience base; and Lazy Audio, an audio platform. In addition, it sells music-related merchandise; and artist-related merchandise, such as branded apparel, posters and art prints, and accessories and integrated and technology-driven music solutions that help IoT device manufacturers build and operate their branded music services on their IoT devices, as well as offers advertising services across its online karaoke platform and online music apps. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.