TME vs. MSFT

Last updated Jun 3, 2026

TME (Tencent Music Entertainment Group) and MSFT (Microsoft Corporation) are both stocks. TME operates in Internet Content & Information (Communication Services), while MSFT operates in Software - Infrastructure (Technology). Over the past 5 years, TME returned -8.34%/yr vs 13.35%/yr for MSFT. At a 0.26 correlation, their price movements are largely independent.

Performance

TME vs. MSFT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Tencent Music Entertainment Group (TME) and Microsoft Corporation (MSFT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TME achieves a -44.30% return, which is significantly lower than MSFT's -8.34% return.

TME

• 1D: 0.11%
• 1M: 4.51%
• YTD: -44.30%
• 6M: -47.16%
• 1Y: -43.75%
• 3Y*: 9.89%
• 5Y*: -8.34%
• 10Y*: —

MSFT

• 1D: -4.17%
• 1M: 6.71%
• YTD: -8.34%
• 6M: -9.54%
• 1Y: -3.71%
• 3Y*: 10.44%
• 5Y*: 13.35%
• 10Y*: 25.43%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TME vs. MSFT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
TME Tencent Music Entertainment Group	-44.30%	56.39%	27.12%	8.82%	20.88%	-64.40%	63.88%	-11.20%	-5.57%
MSFT Microsoft Corporation	-8.34%	15.58%	12.93%	58.19%	-28.02%	52.48%	42.53%	57.56%	-6.88%

Correlation

The correlation between TME and MSFT is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.20
Correlation (3Y) Calculated over the trailing 3-year period	0.16
Correlation (5Y) Calculated over the trailing 5-year period	0.24
Correlation (All Time) Calculated using the full available price history since Dec 13, 2018	0.26

Fundamentals

Market Cap TME : $14.79B MSFT : $3.29T
EPS TME : $5.49 MSFT : $16.79
PE Ratio TME : 1.73 MSFT : 26.28
PEG Ratio TME : 0.04 MSFT : 1.84
PS Ratio TME : 0.46 MSFT : 10.34
PB Ratio TME : 0.20 MSFT : 7.93
Total Revenue (TTM) TME : $32.50B MSFT : $318.27B
Gross Profit (TTM) TME : $18.52B MSFT : $217.41B
EBITDA (TTM) TME : $13.20B MSFT : $200.96B

Return for Risk

TME vs. MSFT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TME

TME Risk / Return Rank: 11
TME Sharpe Ratio Rank: 5
TME Sortino Ratio Rank: 8
TME Omega Ratio Rank: 6
TME Calmar Ratio Rank: 18
TME Martin Ratio Rank: 16

MSFT

MSFT Risk / Return Rank: 33
MSFT Sharpe Ratio Rank: 34
MSFT Sortino Ratio Rank: 28
MSFT Omega Ratio Rank: 29
MSFT Calmar Ratio Rank: 36
MSFT Martin Ratio Rank: 37

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TME vs. MSFT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Tencent Music Entertainment Group (TME) and Microsoft Corporation (MSFT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	TME	MSFT	Difference
Sharpe ratio Return per unit of total volatility	-0.94	-0.15	-0.79
Sortino ratio Return per unit of downside risk	-1.21	-0.04	-1.17
Omega ratio Gain probability vs. loss probability	0.82	1.00	-0.17
Calmar ratio Return relative to maximum drawdown	-0.63	-0.10	-0.53
Martin ratio Return relative to average drawdown	-1.14	-0.21	-0.93
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TME vs. MSFT - Sharpe Ratio Comparison

The current TME Sharpe Ratio is -0.94, which is lower than the MSFT Sharpe Ratio of -0.15. The chart below compares the historical Sharpe Ratios of TME and MSFT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TME	MSFT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.94	-0.15	-0.79
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.14	0.50	-0.64
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.94	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.08	0.75	-0.83

Drawdowns

TME vs. MSFT - Drawdown Comparison

The maximum TME drawdown since its inception was -90.19%, which is greater than MSFT's maximum drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for TME and MSFT.

Drawdown Indicators

	TME	MSFT	Difference
Max Drawdown Largest peak-to-trough decline	-90.19%	-69.38%	-20.81%
Max Drawdown (1Y) Largest decline over 1 year	-67.01%	-33.91%	-33.10%
Max Drawdown (3Y) Largest decline over 3 years	-67.01%	-33.91%	-33.10%
Max Drawdown (5Y) Largest decline over 5 years	-80.52%	-37.15%	-43.37%
Max Drawdown (10Y) Largest decline over 10 years	—	-37.15%	—
Current Drawdown Current decline from peak	-68.61%	-18.07%	-50.54%
Average Drawdown Average peak-to-trough decline	-51.96%	-21.78%	-30.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	36.70%	15.90%	+20.80%

Volatility

TME vs. MSFT - Volatility Comparison

Tencent Music Entertainment Group (TME) has a higher volatility of 12.93% compared to Microsoft Corporation (MSFT) at 9.31%. This indicates that TME's price experiences larger fluctuations and is considered to be riskier than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TME	MSFT	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.93%	9.31%	+3.62%
Volatility (6M) Calculated over the trailing 6-month period	40.75%	22.14%	+18.61%
Volatility (1Y) Calculated over the trailing 1-year period	46.91%	24.92%	+21.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	60.02%	26.59%	+33.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	56.74%	27.03%	+29.71%

Dividends

TME vs. MSFT - Dividend Comparison

TME's dividend yield for the trailing twelve months is around 2.52%, more than MSFT's 0.81% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSFT Microsoft Corporation	0.81%	0.70%	0.73%	0.74%	1.06%	0.68%	0.94%	1.20%	1.69%	1.86%	2.37%	2.33%
TME Tencent Music Entertainment Group	2.52%	1.03%	1.21%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

TME vs. MSFT - Profitability Comparison

The chart below illustrates the profitability comparison between Tencent Music Entertainment Group and Microsoft Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

TME - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Tencent Music Entertainment Group reported a gross profit of 3.52B and revenue of 7.85B. Therefore, the gross margin over that period was 44.9%.

MSFT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported a gross profit of 56.06B and revenue of 82.89B. Therefore, the gross margin over that period was 67.6%.

TME - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Tencent Music Entertainment Group reported an operating income of 2.32B and revenue of 7.85B, resulting in an operating margin of 29.6%.

MSFT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported an operating income of 38.40B and revenue of 82.89B, resulting in an operating margin of 46.3%.

TME - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Tencent Music Entertainment Group reported a net income of 2.08B and revenue of 7.85B, resulting in a net margin of 26.5%.

MSFT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported a net income of 31.78B and revenue of 82.89B, resulting in a net margin of 38.3%.

Frequently Asked Questions

Can I hold both TME and MSFT in my portfolio?

TME and MSFT have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TME or MSFT?

TME has higher volatility (12.93%) compared to MSFT (9.31%). In terms of maximum drawdown, TME dropped -90.19% vs MSFT's -69.38%.

Which has better risk-adjusted returns?

MSFT currently has the higher Sharpe Ratio (-0.15 vs -0.94), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.