WallStSmart

Nebius Group N.V. (NBIS)vsTencent Music Entertainment Group (TME)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tencent Music Entertainment Group generates 2404% more annual revenue ($33.93B vs $1.36B). TME leads profitability with a 26.3% profit margin vs 3.1%. NBIS appears more attractively valued with a PEG of 0.53. TME earns a higher WallStSmart Score of 72/100 (B).

NBIS

Hold

43

out of 100

Grade: D

Growth: 8.0Profit: 3.0Value: 7.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.10

TME

Strong Buy

72

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 8.7Quality: 8.5
Piotroski: 7/9Altman Z: 3.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NBISUndervalued (+52.2%)

Margin of Safety

+52.2%

Fair Value

$469.87

Current Price

$224.55

$245.32 discount

UndervaluedFair: $469.87Overvalued
TMEUndervalued (+56.3%)

Margin of Safety

+56.3%

Fair Value

$38.79

Current Price

$7.98

$30.81 discount

UndervaluedFair: $38.79Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NBIS3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
454.0%10/10

Revenue surging 454.0% year-over-year

Market CapQuality
$57.01B9/10

Large-cap with strong market position

PEG RatioValuation
0.538/10

Growing faster than its price suggests

TME6 strengths · Avg: 9.3/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.9210/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
26.3%9/10

Keeps 26 of every $100 in revenue as profit

Debt/EquityHealth
0.229/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Areas to Watch

NBIS4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
0.6%3/10

ROE of 0.6% — below average capital efficiency

Profit MarginProfitability
3.1%3/10

3.1% margin — thin

Free Cash FlowQuality
$-3.41B2/10

Negative free cash flow — burning cash

TME1 concerns · Avg: 4.0/10
EPS GrowthGrowth
2.4%4/10

2.4% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : NBIS

The strongest argument for NBIS centers on Revenue Growth, Market Cap, PEG Ratio. Revenue growth of 454.0% demonstrates continued momentum. PEG of 0.53 suggests the stock is reasonably priced for its growth.

Bull Case : TME

The strongest argument for TME centers on P/E Ratio, Price/Book, Altman Z-Score. Profitability is solid with margins at 26.3% and operating margin at 29.2%. PEG of 1.15 suggests the stock is reasonably priced for its growth.

Bear Case : NBIS

The primary concerns for NBIS are EPS Growth, Return on Equity, Profit Margin. Thin 3.1% margins leave little buffer for downturns.

Bear Case : TME

The primary concerns for TME are EPS Growth.

Key Dynamics to Monitor

NBIS profiles as a hypergrowth stock while TME is a mature play — different risk/reward profiles.

NBIS carries more volatility with a beta of 1.44 — expect wider price swings.

NBIS is growing revenue faster at 454.0% — sustainability is the question.

TME generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

TME scores higher overall (72/100 vs 43/100), backed by strong 26.3% margins. NBIS offers better value entry with a 52.2% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Nebius Group N.V.

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Nebius Group N.V. (Ticker: NBIS) is an innovative technology firm that specializes in advanced digital solutions to enhance client engagement and operational efficiency across diverse sectors. By integrating cutting-edge cloud computing, artificial intelligence, and data analytics, Nebius enables businesses to adeptly manage the complexities of today's digital landscape. The company boasts a strong portfolio of intellectual property and strategic partnerships, positioning it favorably to capitalize on significant growth opportunities in the technology-driven marketplace. As such, Nebius presents a compelling investment opportunity for institutional investors seeking to gain exposure to pioneering solutions in the tech sector.

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Tencent Music Entertainment Group

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · China

Tencent Music Entertainment Group operates online music entertainment platforms providing music streaming, online karaoke and live streaming services in the People's Republic of China.

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