Critical Analysis: Tencent Music Entertainment Group (TME) vs. The Competition

Tencent Music Entertainment Group (NYSE: TME) is one of 21 publicly-traded companies in the “Radio broadcasting stations” industry, but how does it compare to its rivals? We will compare Tencent Music Entertainment Group to related companies based on the strength of its analyst recommendations, earnings, risk, dividends, institutional ownership, profitability and valuation.

Valuation & Earnings

This table compares Tencent Music Entertainment Group and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tencent Music Entertainment Group $4.47 billion $602.06 million 21.85
Tencent Music Entertainment Group Competitors $2.11 billion -$81.47 million -22.01

Tencent Music Entertainment Group has higher revenue and earnings than its rivals. Tencent Music Entertainment Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Tencent Music Entertainment Group has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Tencent Music Entertainment Group’s rivals have a beta of 1.12, meaning that their average share price is 12% more volatile than the S&P 500.

Insider and Institutional Ownership

28.1% of Tencent Music Entertainment Group shares are held by institutional investors. Comparatively, 32.8% of shares of all “Radio broadcasting stations” companies are held by institutional investors. 27.5% of shares of all “Radio broadcasting stations” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Tencent Music Entertainment Group 11.53% 7.98% 6.14%
Tencent Music Entertainment Group Competitors 4.72% -17.37% 0.59%

Analyst Recommendations

This is a breakdown of current recommendations for Tencent Music Entertainment Group and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tencent Music Entertainment Group 2 9 4 0 2.13
Tencent Music Entertainment Group Competitors 165 629 963 30 2.48

Tencent Music Entertainment Group currently has a consensus price target of $14.43, suggesting a potential upside of 94.22%. As a group, “Radio broadcasting stations” companies have a potential upside of 30.50%. Given Tencent Music Entertainment Group’s higher probable upside, equities analysts clearly believe Tencent Music Entertainment Group is more favorable than its rivals.

Summary

Tencent Music Entertainment Group beats its rivals on 7 of the 13 factors compared.

Tencent Music Entertainment Group Company Profile

Tencent Music Entertainment Group engages in the operation of an online music entertainment platform. Its platform comprises of online music, online karaoke, and music-centric live streaming products. The company was founded on June 6, 2012 and is headquartered in Beijing, China.

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