Tencent Music Entertainment Group - ADR vs Warner Music Group Corp — how do they compare? Tencent Music Entertainment Group - ADR trades at $7.9 (market cap $13.50B), while Warner Music Group Corp trades at $28.16 (market cap $14.66B). The key difference: Tencent Music Entertainment Group - ADR and Warner Music Group Corp are close in size by market cap, and Tencent Music Entertainment Group - ADR pays the higher dividend (2.98%). Which is the better fit depends on your goals.
| TME | WMG | |
|---|---|---|
Market Cap | $13.50B | $14.66B |
Sector | Media | Media |
52-Week High | $26.36 | $34.72 |
52-Week Low | $7.89 | $23.65 |
Enterprise Value | $11.44B | $18.96B |
Dividend Yield | 2.98% | 2.85% |
Signals from Pluang's Aura AI — not financial advice
Tencent Music Entertainment (TME) trades at $8.06, down 2.42% on the day, with technical indicators signaling a bearish trend. The company reported strong Q2 2026 earnings with an EPS beat of $0.25 versus $0.24 expected, and revenue growth to $32.9B in 2025. However, recent news highlights a $1 billion notes offering and mixed analyst sentiment amid competitive pressures.
TME presents a value opportunity with a low P/E of 9.46 and a consensus price target of $12.15, but faces risks from slowing growth and intense competition. Investors should weigh solid fundamentals against near-term headwinds in the music streaming sector.
Warner Music Group (WMG) trades at $28.03, down 2.61% on the day, with a bearish technical signal. Recent earnings show mixed quarterly beats, with Q1 and Q2 2026 exceeding expectations but Q4 2025 missing. Revenue has grown steadily from $5.9B in 2022 to $6.7B in 2025, though net income margin declined to 5.44%. The company maintains a strong ROE of 25.38% and recently announced a strategic AI music partnership with Suno (Reuters, 2026-09-09).
Outlook is cautiously optimistic with analyst consensus at 66.7% buy ratings. Key opportunities include streaming growth and AI initiatives, while risks involve margin pressure and leadership changes. The stock's valuation at a P/E of 22.42 appears reasonable given growth prospects, but investors should monitor execution on margin improvement and competitive dynamics in the music industry.
Trailing returns across standard periods
TME is the largest online music service provider in China. It was founded in 2016 with the business combination of QQ Music (founded in 2005), Kuwo Music (founded in 2005) and Kugou Music (founded in 2004) streaming platforms. Tencent is the largest shareholder of TME with over 50% shares and over 90% voting rights held. TME also provides social entertainment services, including music live audio/video broadcasts and online concert services through the three platforms mentioned above, and online karaoke through an independent platform WeSing.
Read more on TME →Warner Music Group is the third largest of the three major global record labels, with Vivendi's Universal Music in first and Sony Music in second. Warner's larger segment, recorded music, consists of iconic labels like Atlantic Records, Warner Records, and Parlophone Records and popular artists such as Ed Sheeran, Cardi B, Dua Lipa, and Blake Shelton. Warner Chappell, the firm's publishing arm, is the home to over 65,000 composers and songwriters with over a million copyrights represented. Warner is controlled by Access Industries, which owns an 84% economic interest and 99% of voting rights.
Read more on WMG →