Baidu, Inc. (BIDU) vs Tencent Music Entertainment Group Sponsored ADR (TME)

Baidu, Inc. and Tencent Music Entertainment Group Sponsored ADR are both Internet Content & Information companies. Baidu, Inc. is the larger, with a market value of $21.7B against $5.3B — 4.1× the size. Baidu, Inc. has negative trailing earnings, so its P/E is not meaningful; Tencent Music Entertainment Group Sponsored ADR trades at 10.2×. Tencent Music Entertainment Group Sponsored ADR grew revenue faster over the last twelve months: 17.8% against 2.43%. Tencent Music Entertainment Group Sponsored ADR has the higher net margin (26.4% vs −2.58%) and the higher return on invested capital (9.92% vs −2.17%). Across the 19 metrics below, Tencent Music Entertainment Group Sponsored ADR leads on 13 and Baidu, Inc. on 6.

Valuation

Metric BIDU TME Internet Content & Information median
P/E n/m 10.18 12.10
P/S 1.39 2.73 0.93
P/B 0.66 1.11 1.26
Price to free cash flow n/m 13.17 8.57
EV/EBITDA n/m 7.19 9.76
EV/Sales 0.71 2.12 1.10
Earnings yield (2.43%) 9.82% 0.70%
Free cash flow yield (8.87%) 7.60% 3.77%

Profitability

Metric BIDU TME Internet Content & Information median
Gross margin 40.92% 44.34% 66.11%
Operating margin (5.36%) 29.41% 0.36%
Net margin (2.58%) 26.37% 1.24%
Free cash flow margin 0.00% 33.20% 3.47%
Return on equity 0.00% 10.65% 0.00%
Return on assets (0.73%) 7.91% 0.50%
Return on invested capital (2.17%) 9.92% 0.00%

Growth

Metric BIDU TME Internet Content & Information median
Revenue growth (TTM) 2.43% 17.81% 5.54%
EPS growth (last fiscal year) (74.82%) 75.86% 34.37%
Revenue growth, 5-year CAGR 2.38% 1.62% 10.75%
Net income growth, 5-year CAGR (25.34%) 20.63% 0.00%

Health

Metric BIDU TME Internet Content & Information median
Debt to equity 0.29 0.13 0.01
Current ratio 2.33 1.74 1.85
Net debt to EBITDA (2.46) (1.88) (0.53)

Dividend

Metric BIDU TME Internet Content & Information median
Dividend yield — 2.84% 1.13%
Payout ratio — 0.30 0.28

Size

Metric BIDU TME Internet Content & Information median
Market cap 21.72b 5.28b 636.02m

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