Comprehensive Stock Comparison
Compare Zedge, Inc. (ZDGE) vs Tencent Music Entertainment Group (TME) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | TME | 2.3% revenue growth vs ZDGE's -2.3% |
| Value | TME | Better valuation composite |
| Quality / Margins | TME | 34.1% net margin vs ZDGE's -4.2% |
| Stability / Safety | TME | Beta 0.87 vs ZDGE's 1.07 |
| Dividends | TME | 1.0% yield; 3-year raise streak; ZDGE pays no meaningful dividend |
| Momentum (1Y) | ZDGE | +36.1% vs TME's +21.2% |
| Efficiency (ROA) | TME | 10.3% ROA vs ZDGE's -3.5%, ROIC 11.6% vs -6.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Zedge operates a mobile personalization platform that lets users customize their devices with wallpapers, ringtones, and app icons. It generates revenue primarily through advertising — served across its free app — and premium subscriptions that remove ads and unlock exclusive content. Its competitive advantage lies in its massive user base and content library, creating network effects where more users attract more creators and vice versa.
Tencent Music Entertainment operates China's largest online music entertainment ecosystem, providing music streaming, social karaoke, and live streaming services. It generates revenue primarily through music subscriptions (about 40% of revenue), social entertainment services like virtual gifting on live streams (about 60%), and advertising. Its key advantage is exclusive access to Tencent's vast music library and integration with WeChat's massive user base, creating a powerful network effect in China's music market.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TME leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). ZDGE leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
TME is the larger business by revenue, generating $31.7B annually — 1063.9x ZDGE's $30M. TME is the more profitable business, keeping 34.1% of every revenue dollar as net income compared to ZDGE's -4.2%. On growth, TME holds the edge at +20.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ZDGEZedge, Inc. | TMETencent Music Ent… |
|---|---|---|
| RevenueTrailing 12 months | $30M | $31.7B |
| EBITDAEarnings before interest/tax | $2M | $13.4B |
| Net IncomeAfter-tax profit | -$1M | $10.8B |
| Free Cash FlowCash after capex | $3M | $10.0B |
| Gross MarginGross profit ÷ Revenue | +90.2% | +43.9% |
| Operating MarginEBIT ÷ Revenue | +2.0% | +40.8% |
| Net MarginNet income ÷ Revenue | -4.2% | +34.1% |
| FCF MarginFCF ÷ Revenue | +11.1% | +31.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +5.8% | +20.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.5% | +38.0% |
Valuation Metrics
On an enterprise value basis, TME's 6.6x EV/EBITDA is more attractive than ZDGE's 63.1x.
| Metric | ZDGEZedge, Inc. | TMETencent Music Ent… |
|---|---|---|
| Market CapShares × price | $42M | $10.3B |
| Enterprise ValueMkt cap + debt − cash | $23M | $9.3B |
| Trailing P/EPrice ÷ TTM EPS | -19.35x | 23.62x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 2.27x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.93x |
| EV / EBITDAEnterprise value multiple | 63.09x | 6.59x |
| Price / SalesMarket cap ÷ Revenue | 1.42x | 2.50x |
| Price / BookPrice ÷ Book value/share | 1.74x | 2.25x |
| Price / FCFMarket cap ÷ FCF | 12.51x | 7.68x |
Profitability & Efficiency
TME delivers a 12.7% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $-5 for ZDGE. ZDGE carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to TME's 0.09x. On the Piotroski fundamental quality scale (0–9), TME scores 7/9 vs ZDGE's 6/9, reflecting strong financial health.
| Metric | ZDGEZedge, Inc. | TMETencent Music Ent… |
|---|---|---|
| ROE (TTM)Return on equity | -4.9% | +12.7% |
| ROA (TTM)Return on assets | -3.5% | +10.3% |
| ROICReturn on invested capital | -6.3% | +11.6% |
| ROCEReturn on capital employed | -2.6% | +12.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.01x | 0.09x |
| Net DebtTotal debt minus cash | -$18M | -$7.1B |
| Cash & Equiv.Liquid assets | $19M | $13.2B |
| Total DebtShort + long-term debt | $197,000 | $6.1B |
| Interest CoverageEBIT ÷ Interest expense | — | 802.03x |
Total Returns (with DRIP)
A $10,000 investment in TME five years ago would be worth $5,539 today (with dividends reinvested), compared to $2,945 for ZDGE. Over the past 12 months, ZDGE leads with a +36.1% total return vs TME's +21.2%. The 3-year compound annual growth rate (CAGR) favors TME at 25.5% vs ZDGE's 6.5% — a key indicator of consistent wealth creation.
| Metric | ZDGEZedge, Inc. | TMETencent Music Ent… |
|---|---|---|
| YTD ReturnYear-to-date | -1.9% | -18.3% |
| 1-Year ReturnPast 12 months | +36.1% | +21.2% |
| 3-Year ReturnCumulative with dividends | +20.8% | +97.8% |
| 5-Year ReturnCumulative with dividends | -70.5% | -44.6% |
| 10-Year ReturnCumulative with dividends | -36.1% | +6.5% |
| CAGR (3Y)Annualised 3-year return | +6.5% | +25.5% |
Risk & Volatility
TME is the less volatile stock with a 0.87 beta — it tends to amplify market swings less than ZDGE's 1.07 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ZDGE currently trades 67.3% from its 52-week high vs TME's 54.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ZDGEZedge, Inc. | TMETencent Music Ent… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.07x | 0.87x |
| 52-Week HighHighest price in past year | $4.89 | $26.70 |
| 52-Week LowLowest price in past year | $1.73 | $11.71 |
| % of 52W HighCurrent price vs 52-week peak | +67.3% | +54.7% |
| RSI (14)Momentum oscillator 0–100 | 48.9 | 35.2 |
| Avg Volume (50D)Average daily shares traded | 83K | 5.0M |
Analyst Outlook
TME is the only dividend payer here at 0.96% yield — a key consideration for income-focused portfolios.
| Metric | ZDGEZedge, Inc. | TMETencent Music Ent… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Buy |
| Price TargetConsensus 12-month target | — | $25.00 |
| # AnalystsCovering analysts | — | 24 |
| Dividend YieldAnnual dividend ÷ price | — | +1.0% |
| Dividend StreakConsecutive years of raises | — | 3 |
| Dividend / ShareAnnual DPS | — | $0.96 |
| Buyback YieldShare repurchases ÷ mkt cap | +10.6% | +2.7% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Zedge, Inc. (ZDGE) | 100 | 234.46 | +134.5% |
| Tencent Music Enter… (TME) | 100 | 136.44 | +36.4% |
Tencent Music Enter… (TME) returned -45% over 5 years vs Zedge, Inc. (ZDGE)'s -71%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Zedge, Inc. (ZDGE) | $11M | $29M | +164.5% |
| Tencent Music Enter… (TME) | $4.4B | $28.4B | +551.2% |
Zedge, Inc.'s revenue grew from $11M (2016) to $29M (2025) — a 11.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Zedge, Inc. (ZDGE) | 8.8% | -8.1% | -192.0% |
| Tencent Music Enter… (TME) | 1.9% | 23.4% | +1144.1% |
Zedge, Inc.'s net margin went from 9% (2016) to -8% (2025).
Chart 4P/E Ratio History — 7 Years
| Stock | 2018 | 2024 | Change |
|---|---|---|---|
| Tencent Music Enter… (TME) | 11.4 | 2.7 | -76.3% |
Tencent Music Entertainment Group has traded in a 3x–11x P/E range over 7 years; current trailing P/E is ~24x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Zedge, Inc. (ZDGE) | 0.11 | -0.17 | -254.5% |
| Tencent Music Enter… (TME) | 0.05 | 4.24 | +8363.1% |
Zedge, Inc.'s EPS grew from $0.11 (2016) to $-0.17 (2025) — a NaN% CAGR.
Chart 6Free Cash Flow — 5 Years
Zedge, Inc. generated $3M FCF in 2025 (-65% vs 2021). Tencent Music Entertainment Group generated $9B FCF in 2024 (+273% vs 2021).
ZDGE vs TME: Frequently Asked Questions
7 questions · data-driven answers · updated daily
01Is ZDGE or TME a better buy right now?
Tencent Music Entertainment Group (TME) offers the better valuation at 23.6x trailing P/E (2.3x forward), making it the more compelling value choice. Analysts rate Tencent Music Entertainment Group (TME) a "Buy" — based on 24 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — ZDGE or TME?
Over the past 5 years, Tencent Music Entertainment Group (TME) delivered a total return of -44.6%, compared to -70.5% for Zedge, Inc. (ZDGE). A $10,000 investment in TME five years ago would be worth approximately $6K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TME returned +6.5% versus ZDGE's -36.1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — ZDGE or TME?
By beta (market sensitivity over 5 years), Tencent Music Entertainment Group (TME) is the lower-risk stock at 0.87β versus Zedge, Inc.'s 1.07β — meaning ZDGE is approximately 23% more volatile than TME relative to the S&P 500. On balance sheet safety, Zedge, Inc. (ZDGE) carries a lower debt/equity ratio of 1% versus 9% for Tencent Music Entertainment Group — giving it more financial flexibility in a downturn.
04Which has better profit margins — ZDGE or TME?
Tencent Music Entertainment Group (TME) is the more profitable company, earning 23.4% net margin versus -8.1% for Zedge, Inc. — meaning it keeps 23.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TME leads at 30.7% versus -2.6% for ZDGE. At the gross margin level — before operating expenses — ZDGE leads at 89.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Which pays a better dividend — ZDGE or TME?
In this comparison, TME (1.0% yield) pays a dividend. ZDGE does not pay a meaningful dividend and should not be held primarily for income.
06Is ZDGE or TME better for a retirement portfolio?
For long-horizon retirement investors, Tencent Music Entertainment Group (TME) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.87), 1.0% yield). Both have compounded well over 10 years (TME: +6.5%, ZDGE: -36.1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
07What are the main differences between ZDGE and TME?
Both stocks operate in the Communication Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. TME pays a dividend while ZDGE does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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- Sector: Communication Services
- Market Cap > $100B
- Revenue Growth > 10%
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