Prosus vs Tencent Music Entertainment

Prosus and Tencent Music Entertainment are two prominent players in the global technology and entertainment industries. Both companies have seen significant growth and success in recent years, attracting the attention of investors worldwide. Prosus, a South African-based technology investment company, has a diverse portfolio of internet and entertainment businesses. Tencent Music Entertainment, a Chinese music streaming platform, is a subsidiary of the tech giant Tencent Holdings. This comparison will analyze the performance and potential of both stocks, providing insights for investors seeking to capitalize on the growth of the technology and entertainment sectors.

Prosus or Tencent Music Entertainment?

When comparing Prosus and Tencent Music Entertainment, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Prosus and Tencent Music Entertainment.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Prosus has a dividend yield of 0.18%, while Tencent Music Entertainment has a dividend yield of 0.16%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Prosus reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.03%. On the other hand, Tencent Music Entertainment reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Prosus P/E ratio at 4.71 and Tencent Music Entertainment's P/E ratio at 24.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Prosus P/B ratio is 0.75 while Tencent Music Entertainment's P/B ratio is 2.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Prosus has seen a 5-year revenue growth of 1.19%, while Tencent Music Entertainment's is 0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Prosus's ROE at 16.24% and Tencent Music Entertainment's ROE at 9.69%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.41 for Prosus and $12.02 for Tencent Music Entertainment. Over the past year, Prosus's prices ranged from $5.39 to $9.20, with a yearly change of 70.69%. Tencent Music Entertainment's prices fluctuated between $6.54 and $15.77, with a yearly change of 140.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.