TME vs BABA Stock Comparison

Tencent Music Entertainment and Alibaba Group Holding Prices as of Oct 26, 2026 Peers: Industry group
BABA Alibaba Group Holding Ltd
$100.26 -8.7% 1M -42.6% 1Y
Market cap
$232.86B
P/E
22.1x
Revenue (TTM)
$150.46B
Div. yield
1.05%
Digital Marketplaces Technology
3 wins

Head to Head

11 decided of 12

Tencent Music Entertainment leads on 8 of the 12 questions below (Tencent Music Entertainment 8, Alibaba Group Holding 3). Which ones matter depends on what you are buying for; a cheap multiple and slow growth often come together.

QuestionTMEBABALeader
Larger companyMarket capitalisation $13.35B $232.86B BABA
Cheaper on earningsLower P/E, profitable companies only 10.2x 22.1x TME
Cheaper on forward earningsLower price / next fiscal year consensus EPS 9.4x 14.3x TME
Faster revenue growthRevenue growth, trailing twelve months +200.4% +8.1% TME
More profitableNet margin, trailing twelve months 835.7% 7.0% TME
Better return on capitalReturn on invested capital 12.8% 2.4% TME
Less leveragedLower net debt / EBITDA -2.3x — –
Higher dividend yieldTrailing dividend yield 2.83% 1.05% TME
Better 1-year returnPrice return, last 12 months -63.0% -42.6% BABA
Better 5-year returnAnnualised price return, 5 years +0.9%/yr -9.9%/yr TME
Less volatileAnnualised volatility, 1 year 49.5% 40.4% BABA
Higher overall scoreMean of the five percentile scores vs peers 66/100 46/100 TME

Percentile Scorecard

TMEBABA

Each axis is the mean percentile of its metrics against the company's industry group. 100 is the best in the group, 50 the middle.

Scores by Axis

AxisTMEBABA
Valuation 75 #23 of 90 71 #27 of 90
Growth 53 #36 of 75 12 #66 of 75
Profitability 85 #12 of 75 54 #35 of 75
Financial Health 70 #30 of 99 55 #45 of 99
Shareholder Returns 49 #19 of 36 37 #23 of 36
Overall 66 46
  • TME ranked among 102 companies in Internet Platforms
  • BABA ranked among 102 companies in Internet Platforms

Price Performance

Price return, split-adjusted, before dividends. Click a name to hide or show it.

Returns

PeriodTMEBABASPY
1 month +1.0%-8.7% -0.8%
3 months -8.9%-12.8% +3.5%
6 months -9.4%-24.3% +7.0%
Year to date -51.6%-31.6% +12.2%
1 year -63.0%-42.6% +13.0%
3 years +18.9%+21.1% +86.3%
3 years, per year +6.0%+6.6% +23.1%
5 years +4.8%-40.8% +68.6%
5 years, per year +0.9%-9.9% +11.0%
10 years —-2.5% +258.0%
10 years, per year —-0.2% +13.6%

Risk

MeasureTMEBABASPY
Volatility, 1Y 49.5%40.4% 12.7%
Downside volatility, 1Y 58.5%36.0% 12.7%
Beta vs S&P 500, 1Y 0.871.11 1.00
Return / volatility, 1Y -1.27-1.06 1.02
Max drawdown, 5Y -70.6%-62.9% -25.4%
From 52-week high -64.2%-44.3% -1.8%
52-week high $23.71$179.97 $779.14
52-week low $7.74$94.81 $631.97

Valuation History

Weekly multiples on trailing twelve-month fundamentals. Negative or extreme readings (a loss year, a collapsed denominator) are left out so the chart stays readable.

MultipleTMEBABA
P/E now vs peer median 10.2xmedian 17.9x 22.1xmedian 17.9x
P/S now vs peer median 87.4xmedian 1.7x 1.5xmedian 1.7x
EV/EBITDA now vs peer median 4.7xmedian 11.8x —median 11.8x
P/FCF now vs peer median 8.3xmedian 10.1x 7.0xmedian 10.1x
P/B now vs peer median 1.2xmedian 1.2x 1.4xmedian 1.2x
PEG now vs peer median 0.44median 0.38 -15.35median 0.38

Financial History

Reported figures by fiscal period, placed on the calendar year (or quarter) each period ended in, so companies with different fiscal years line up.

Trailing twelve monthsTMEBABA
Revenue $152.71M $150.46B
Gross profit $2.15B $57.45B
Operating income $1.61B $4.39B
Net income $1.31B $10.08B
Free cash flow $1.61B $33.19B
R&D – $10.68B
EPS (diluted) $0.82 $4.38
Cash & equivalents $3.49B $21.06B
Total debt $1.93B $83.76B
Shares (diluted) 1.55B 2.40B
Enterprise value -$8.97B $54.93B

All Metrics

58 metrics · best in bold

Bold marks the best reading: the lowest positive value for multiples, leverage and payout, the highest for everything else. The bar under each value is its percentile against that company's own peers. Hover a value for its rank and the peer median.

Valuation

12 metrics
MetricTMEBABA
P/E 10.2x 22.1x
P/FCF 8.3x 7.0x
P/Operating cash flow 8.3x 20.6x
P/S 87.4x 1.5x
P/B 1.2x 1.4x
P/Tangible book 1.3x 1.5x
EV/EBITDA 4.7x –
EV/EBIT 5.6x 48.0x
EV/Revenue 58.8x 1.4x
EV/FCF 5.6x 6.3x
EV/Operating cash flow 5.6x 18.6x
PEG (3Y EPS CAGR) 0.44 -15.35

Growth

14 metrics
MetricTMEBABA
Revenue growth (1Y) 200.4% 8.1%
Revenue CAGR (3Y) 5.2% 5.6%
Gross profit growth (1Y) 17.2% 0.2%
Gross profit CAGR (3Y) 15.7% 6.5%
Operating income growth (1Y) -6.1% -77.5%
Operating income CAGR (3Y) 26.1% -35.9%
Net income growth (1Y) -10.7% -50.0%
Net income CAGR (3Y) 23.6% -3.6%
EPS growth (1Y) -9.3% -47.9%
EPS CAGR (3Y) 23.2% -1.4%
Operating cash flow growth (1Y) 31.8% -45.8%
Operating cash flow CAGR (3Y) 13.5% -27.8%
Free cash flow growth (1Y) 31.8% -8.5%
Free cash flow CAGR (3Y) 13.5% -0.6%

Profitability

14 metrics
MetricTMEBABA
Gross margin 1,408% 38.2%
EBITDA margin 1,262% –
Operating margin 1,052% 2.9%
Pretax margin 1,042% 9.7%
Net margin 835.7% 7.0%
FCF margin 1,054% 22.1%
Operating cash flow margin 1,054% 7.5%
Return on equity 11.6% 6.2%
Return on assets 8.3% 3.6%
Return on invested capital 12.8% 2.4%
Return on capital employed 12.9% 2.1%
Asset turnover 0.0x 0.5x
Cash conversion (OCF / net income) 1.2x 1.1x
Stock comp / revenue – 1.1%

Financial Health

11 metrics
MetricTMEBABA
Debt / assets 11.2% 7.5%
Debt / equity 0.2x 0.1x
Net debt / EBITDA -2.3x –
Debt / FCF 1.2x 0.6x
Liabilities / assets 33.1% 43.6%
Equity / assets 66.9% 56.4%
Interest coverage 79.1x 3.2x
Current ratio 1.7x 1.4x
Quick ratio 2.1x 0.6x
Cash ratio 1.9x 0.6x
Altman Z-score 2.27 2.30

Shareholder Returns

7 metrics
MetricTMEBABA
Dividend yield 2.8% 1.0%
Net buyback yield – –
Shareholder yield 2.8% 1.0%
Payout ratio (earnings) – –
Payout ratio (FCF) – –
Dividend growth (1Y) – –
Dividend CAGR (3Y) – –

Analyst Estimates

Solid lines are reported fiscal-year results; dashed lines are the consensus for the years ahead. Hover a year for the analysts' high and low, and how each result compared with its estimate.

ConsensusTMEBABA
Forward P/E 9.4xFY2026 14.3xFY2026
EPS, next fiscal year $0.90FY2026 $7.00FY2026
EPS growth, next FY -11.8%FY2026 +80.4%FY2026
EPS growth, the year after -1.1% +23.1%
Revenue, next fiscal year $5.49BFY2026 $173.86BFY2026
Revenue growth, next FY +16.9%FY2026 +17.2%FY2026
Revenue growth, the year after -2.8% +14.7%

Institutional Ownership

13F filings, quarter ended Jun 30, 2026
HoldersTMEBABA
Held by institutions 27.5% 10.1%
Institutions holding 312 1,218
Change in shares held, QoQ +1.6% -5.4%
Institutions buying 172 555
Institutions selling 99 421
Buyers to sellers 1.74 1.32

Return Correlation

Daily returns, last 12 months

1.00 means two stocks move in lockstep, 0 that they move independently. Pairs below about 0.5 diversify each other.

TMEBABA
TME 1.00 0.33
BABA 0.33 1.00

Add a Peer

Largest companies in the same industry

Related Comparisons

Frequently Asked Questions

Which is bigger, TME and BABA?

Alibaba Group Holding (BABA) is the largest by market capitalisation: Tencent Music Entertainment (TME) $13.35B, Alibaba Group Holding (BABA) $232.86B.

Which stock is cheaper, TME and BABA?

Tencent Music Entertainment (TME) trades on the lowest price-to-earnings ratio (Tencent Music Entertainment (TME) 10.2x, Alibaba Group Holding (BABA) 22.1x). On next year's consensus earnings, Tencent Music Entertainment (TME) is cheapest (Tencent Music Entertainment (TME) 9.4x, Alibaba Group Holding (BABA) 14.3x). A lower multiple can reflect slower expected growth, so read it next to the growth figures.

Which company is growing faster?

Tencent Music Entertainment (TME) grew revenue fastest over the trailing twelve months: Tencent Music Entertainment (TME) +200.4%, Alibaba Group Holding (BABA) +8.1%.

Which company is more profitable?

Tencent Music Entertainment (TME) has the highest net margin (Tencent Music Entertainment (TME) 835.7%, Alibaba Group Holding (BABA) 7.0%). On return on invested capital, Tencent Music Entertainment (TME) leads (Tencent Music Entertainment (TME) 12.8%, Alibaba Group Holding (BABA) 2.4%).

Which stock has performed better?

Over the past year Alibaba Group Holding (BABA) returned the most: Tencent Music Entertainment (TME) -63.0%, Alibaba Group Holding (BABA) -42.6%. Over five years, Tencent Music Entertainment (TME) compounded fastest (Tencent Music Entertainment (TME) +0.9%/yr, Alibaba Group Holding (BABA) -9.9%/yr). Returns are price only, before dividends.

Which pays a higher dividend?

Tencent Music Entertainment (TME) has the highest dividend yield: Tencent Music Entertainment (TME) 2.83%, Alibaba Group Holding (BABA) 1.05%.

Which stock is riskier?

By one-year price volatility, Alibaba Group Holding (BABA) has been the steadiest (Tencent Music Entertainment (TME) 49.5%, Alibaba Group Holding (BABA) 40.4%). Volatility measures how widely the price swings, not the risk of the business.

Do TME and BABA move together?

Their daily returns over the past year have a correlation of 0.33, a weak relationship. Holding both diversifies more than two closely linked stocks would.

Which is the better stock, TME and BABA?

There is no single answer; it depends on what you are buying for. On the 12 head-to-head measures on this page, Tencent Music Entertainment (TME) leads on 8. Business Quant does not give investment advice; use the comparison as a starting point for your own research.

Data from SEC filings, exchange prices and consensus estimates, via Business Quant. Percentile scores compare each company with its own peer group, so two companies' scores are each relative to different peers unless you rank against the whole market. Price returns exclude dividends. Nothing on this page is investment advice.