Snap Inc. (SNAP) vs Tencent Music Entertainment Group Sponsored ADR (TME)

Snap Inc. and Tencent Music Entertainment Group Sponsored ADR are both Internet Content & Information companies. Snap Inc. is the larger, with a market value of $8.6B against $6.0B — 1.4× the size. Snap Inc. has negative trailing earnings, so its P/E is not meaningful; Tencent Music Entertainment Group Sponsored ADR trades at 11.4×. Tencent Music Entertainment Group Sponsored ADR grew revenue faster over the last twelve months: 17.8% against 13.8%. Tencent Music Entertainment Group Sponsored ADR has the higher net margin (26.4% vs −2.30%) and the higher return on invested capital (9.92% vs −2.52%). Across the 21 metrics below, Tencent Music Entertainment Group Sponsored ADR leads on 14 and Snap Inc. on 7.

Valuation

Metric SNAP TME Internet Content & Information median
P/E n/m 11.37 12.38
P/S 1.33 3.05 0.93
P/B 3.91 1.24 1.24
Price to free cash flow 11.39 14.71 10.76
EV/EBITDA 165.29 8.28 10.74
EV/Sales 1.44 2.43 1.20
Earnings yield (1.75%) 8.79% (1.71%)
Free cash flow yield 8.78% 6.80% 4.26%

Profitability

Metric SNAP TME Internet Content & Information median
Gross margin 59.11% 44.34% 63.25%
Operating margin (1.81%) 29.41% (1.87%)
Net margin (2.30%) 26.37% (1.37%)
Free cash flow margin 11.83% 33.20% 3.47%
Return on equity (6.78%) 10.65% (1.19%)
Return on assets (2.00%) 7.91% 0.00%
Return on invested capital (2.52%) 9.92% 0.00%

Growth

Metric SNAP TME Internet Content & Information median
Revenue growth (TTM) 13.76% 17.81% 6.92%
EPS growth (last fiscal year) 35.71% 75.86% 34.37%
Revenue growth, 5-year CAGR 18.80% 1.62% 10.46%
Net income growth, 5-year CAGR 0.00% 20.63% 0.00%

Health

Metric SNAP TME Internet Content & Information median
Debt to equity 1.56 0.13 0.01
Current ratio 3.36 1.74 1.84
Net debt to EBITDA (1.65) (1.88) (0.53)

Dividend

Metric SNAP TME Internet Content & Information median
Dividend yield — 2.54% 1.19%
Payout ratio — 0.30 0.27

Size

Metric SNAP TME Internet Content & Information median
Market cap 8.61b 5.96b 693.23m

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