Which Is a Better Investment, TKO Group Holdings, Inc. or Tencent Music Entertainment Group Stock?

By Jenna Brashear
February 27, 2026
Large versus logo comparing two stocks in the same industry
Featured Tickers:

Sifting through countless of stocks in the Entertainment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in TKO Group Holdings, Inc. or Tencent Music Entertainment Group because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how TKO Group Holdings, Inc. and Tencent Music Entertainment Group compare based on key financial metrics to determine which better meets your investment needs.

About TKO Group Holdings, Inc. and Tencent Music Entertainment Group

TKO Group Holdings, Inc. operates as a sports and entertainment company. The company operates through three segments: UFC, WWE and IMG. The UFC segment distributes programming content; ticket sales and site fees associated with the business’s global live events; partnerships and marketing; and consumer products licensing agreements of UFC-branded products. The WWE segment consists of media rights fees associated with the distribution of its programming content; ticket sales and site fees associated with the business’s global live events; partnerships and marketing; and consumer products licensing agreements of WWE-branded products. The IMG segment specializing in media rights management and sales, multi-channel content production and distribution, brand partnerships, strategic consulting, digital services, and event management. This segment also offers hospitality business, offering ticketing, curated guest experiences, live event production and travel management services. It is also involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys. In addition, the company engages in the sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions. The company was incorporated in 2023 and is based in New York, New York. TKO Group Holdings, Inc. is a subsidiary of Endeavor Group Holdings, Inc.

Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online karaoke, and live streaming services in the People’s Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover, enjoy, and share music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with audience base; and Lazy Audio, an audio platform. In addition, it sells artist-related merchandise, such as branded apparel, posters and art prints, and accessories; other music services, such as content licensing, sales of digital albums, sales of customized artist-related merchandises, live performances and concerts, and artist management services; and music subscriptions, as well as offers advertising services across its social entertainment platforms. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.

Latest Entertainment and TKO Group Holdings, Inc., Tencent Music Entertainment Group Stock News

As of February 26, 2026, TKO Group Holdings, Inc. had a $17.7 billion market capitalization, compared to the Entertainment median of $503.4 million. TKO Group Holdings, Inc.’s stock is up 5.6% in 2026, up 4.7% in the previous five trading days and up 43.45% in the past year.

Currently, TKO Group Holdings, Inc.’s price-earnings ratio is 99.0. TKO Group Holdings, Inc.’s trailing 12-month revenue is $4.7 billion with a 4.1% net profit margin. Year-over-year quarterly sales growth most recently was 61.6%. Analysts expect adjusted earnings to reach $3.813 per share for the current fiscal year. TKO Group Holdings, Inc. currently has a 1.4% dividend yield.

As of February 26, 2026, Tencent Music Entertainment Group had a $22.8 billion market cap, putting it in the 87th percentile of all stocks. Tencent Music Entertainment Group’s stock is down 16.5% in 2026, down 4% in the previous five trading days and up 15.97% in the past year.

Currently, Tencent Music Entertainment Group’s price-earnings ratio is 15.1. Tencent Music Entertainment Group’s trailing 12-month revenue is $4.5 billion with a 34.1% net profit margin. Year-over-year quarterly sales growth most recently was 26.8%. Analysts expect adjusted earnings to reach $0.903 per share for the current fiscal year. Tencent Music Entertainment Group currently has a 1.2% dividend yield.

How We Compare TKO Group Holdings, Inc. and Tencent Music Entertainment Group Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at TKO Group Holdings, Inc. and Tencent Music Entertainment Group’s stock grades to see how they measure up against one another.

Learn more about A+ Investor here!

Sign Up to Receive a Free Special Report Showing How A+ Grades Can Help You Make Smarter Investment Decisions

TKO Group Holdings, Inc. and Tencent Music Entertainment Group Stock Value Grades

Company Ticker Value
TKO Group Holdings, Inc. TKO D
Tencent Music Entertainment Group TME B

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

TKO Group Holdings, Inc. has a Value Score of 23, which is Expensive. Tencent Music Entertainment Group has a Value Score of 78, which is Value.

The Value Stock Winner: Tencent Music Entertainment Group

As you can clearly see from the Value Grade breakdown above, Tencent Music Entertainment Group is considered to have better value than TKO Group Holdings, Inc.. For investors who focus solely on a company’s valuation, Tencent Music Entertainment Group could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

TKO Group Holdings, Inc. and Tencent Music Entertainment Group’s Quality Grades

Company Ticker Quality
TKO Group Holdings, Inc. TKO B
Tencent Music Entertainment Group TME B

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

TKO Group Holdings, Inc. has a Quality Score of 70, which is Strong. Tencent Music Entertainment Group has a Quality Score of 73, which is Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both TKO Group Holdings, Inc. and Tencent Music Entertainment Group have a grade of B. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

TKO Group Holdings, Inc. and Tencent Music Entertainment Group’s Estimate Revisions Grades

Company Ticker Earnings Estimate
TKO Group Holdings, Inc. TKO D
Tencent Music Entertainment Group TME C

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

TKO Group Holdings, Inc. has a Earnings Estimate Score of 25, which is Negative. Tencent Music Entertainment Group has a Earnings Estimate Score of 50, which is Neutral.

The Earnings Estimate Revisions Stock Winner: No Clear Winner

Neither TKO Group Holdings, Inc. or Tencent Music Entertainment Group has an Earnings Estimate Revisions Grade that could be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if TKO Group Holdings, Inc. or Tencent Music Entertainment Group is the better investment when it comes to estimate revisions.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other TKO Group Holdings, Inc. and Tencent Music Entertainment Group Grades

In addition to Value, Estimate Revisions and Quality, A+ Investor also provides grades for Growth and Momentum.

AAII Platinum Banner

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether TKO Group Holdings, Inc. and Tencent Music Entertainment Group pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, TKO Group Holdings, Inc. or Tencent Music Entertainment Group Stock?

Overall, TKO Group Holdings, Inc. stock has a Value Score of 23, Estimate Revisions Score of 25 and Quality Score of 70.

Tencent Music Entertainment Group stock has a Value Score of 78, Estimate Revisions Score of 50 and Quality Score of 73.

Comparing TKO Group Holdings, Inc. and Tencent Music Entertainment Group’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



Find New Stock Opportunities With Included With AAII Platinum
High Relative Dividend
Yield Screen:
8.7% Compared to S&P 500
at only 6.9%

Since Inception. Data as of 12/31/2024.




Try AAII Platinum and get full access to
769.3% Stock Superstars Portfolio Total Return Since Inception
Compare to:
710.3% iShare DOW Jones
U.S. Index ETF (IYY)

SSR Group 3 O'Shaughnessy portfolio has a 411.2% gain since inception performance compared to IYY at only 119.1%% Performance as of 11/29/24.

Get your free copy of our special report analyzing the tech stocks most likely to outperform the market.

Download the FREE Report Here:

BECOME A MEMBER FOR ONLY $2

Get access to powerful investment discovery tools and a wealth of investment education to help you achieve your financial goals.