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 $9.2B against $5.0B — 1.9× the size. Snap Inc. has negative trailing earnings, so its P/E is not meaningful; Tencent Music Entertainment Group Sponsored ADR trades at 10.1×. Tencent Music Entertainment Group Sponsored ADR grew revenue faster over the last twelve months: 17.8% against 12.7%. Tencent Music Entertainment Group Sponsored ADR has the higher net margin (26.4% vs −4.90%) and the higher return on invested capital (9.92% vs −7.22%). Across the 20 metrics below, Tencent Music Entertainment Group Sponsored ADR leads on 13 and Snap Inc. on 7.

Valuation

Metric SNAP TME Internet Content & Information median
P/E n/m 10.11 10.24
P/S 1.42 2.71 0.87
P/B 4.68 1.10 1.32
Price to free cash flow 12.97 13.07 8.85
EV/EBITDA n/m 7.13 8.86
EV/Sales 1.56 2.10 1.15
Earnings yield (3.32%) 9.89% (1.58%)
Free cash flow yield 7.71% 7.65% 2.32%

Profitability

Metric SNAP TME Internet Content & Information median
Gross margin 57.33% 44.34% 66.84%
Operating margin (5.10%) 29.41% (3.41%)
Net margin (4.90%) 26.37% (3.02%)
Free cash flow margin 11.11% 33.20% 1.75%
Return on equity (15.58%) 10.65% 0.00%
Return on assets (4.19%) 7.91% (0.36%)
Return on invested capital (7.22%) 9.92% 0.00%

Growth

Metric SNAP TME Internet Content & Information median
Revenue growth (TTM) 12.65% 17.81% 2.65%
EPS growth (last fiscal year) 35.71% 75.86% —
Revenue growth, 5-year CAGR 18.80% 1.62% 9.73%
Net income growth, 5-year CAGR 0.00% 20.63% 0.00%

Health

Metric SNAP TME Internet Content & Information median
Debt to equity 1.83 0.13 0.01
Current ratio 2.94 1.74 1.82
Net debt to EBITDA (1.65) (1.88) (0.48)

Dividend

Metric SNAP TME Internet Content & Information median
Dividend yield — — 3.19%
Payout ratio 0.00 0.00 0.00

Size

Metric SNAP TME Internet Content & Information median
Market cap 9.21b 4.95b 283.68m

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