Tencent Music Entertainment Group (NYSE:TME – Get Free Report) is one of 184 public companies in the “Entertainment” industry, but how does it weigh in compared to its peers? We will compare Tencent Music Entertainment Group to related businesses based on the strength of its dividends, profitability, valuation, risk, earnings, analyst recommendations and institutional ownership.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Tencent Music Entertainment Group and its peers, as provided by MarketBeat.
| 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 | 1883 | 4516 | 9639 | 257 | 2.51 |
Tencent Music Entertainment Group presently has a consensus target price of $16.43, indicating a potential upside of 76.38%. As a group, “Entertainment” companies have a potential upside of 15.46%. Given Tencent Music Entertainment Group’s higher probable upside, research analysts clearly believe Tencent Music Entertainment Group is more favorable than its peers.
Valuation & Earnings
This table compares Tencent Music Entertainment Group and its peers revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Tencent Music Entertainment Group | $4.71 billion | $1.54 billion | 11.50 |
| Tencent Music Entertainment Group Competitors | $10.36 billion | $73.91 million | -1.18 |
Tencent Music Entertainment Group’s peers have higher revenue, but lower earnings than Tencent Music Entertainment Group. Tencent Music Entertainment Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Profitability
This table compares Tencent Music Entertainment Group and its peers’ 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% | -24.56% | -2.20% |
Insider and Institutional Ownership
24.3% of Tencent Music Entertainment Group shares are held by institutional investors. Comparatively, 36.0% of shares of all “Entertainment” companies are held by institutional investors. 23.6% of shares of all “Entertainment” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
Tencent Music Entertainment Group pays an annual dividend of $0.23 per share and has a dividend yield of 2.5%. 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 15.9% and pay out 78.6% of their earnings in the form of a dividend.
Risk and Volatility
Tencent Music Entertainment Group has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Tencent Music Entertainment Group’s peers have a beta of 1.00, suggesting that their average stock price is 0% less volatile than the S&P 500.
Summary
Tencent Music Entertainment Group beats its peers on 8 of the 15 factors compared.
About Tencent Music Entertainment Group
Tencent Music Entertainment Group operates online music and music-focused social entertainment services, primarily in China. Its platforms connect listeners, artists, and music-industry partners through streaming, music discovery, and interactive features. The company’s services include QQ Music, Kugou Music, and Kuwo Music, which offer digital music streaming and related content. Its social entertainment offerings include WeSing, a karaoke and singing platform, along with live-streaming and other interactive music experiences.
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