Churchill Downs Inc vs Tencent Music Entertainment Group, two Entertainment stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Churchill Downs runs American racetracks and casinos; Tencent Music is the leader in China's music-streaming market, sold here as an ADR. Tencent earns a much wider 25.03% net margin against Churchill's 13.2%, the difference between a light digital platform and a physical venue operator. The balance sheets diverge just as hard: Tencent carries no net debt while Churchill sits at 4.5 times equity. Tencent also converts more freely to cash, a 10.63% free cash yield versus 4.74%. Churchill's 35.49% return on equity tops Tencent's 10.2%, though leverage flatters it. Churchill Downs is a debt-heavy destination business, Tencent Music an asset-light streaming platform in another market.
Comparison updated 2026-07-11.
| Metric | CHDN | TME |
|---|---|---|
| Price | $85.44 | $8.89 |
| Market cap | $6.0B | $13.7B |
| Sector | Entertainment | Entertainment |
| Stage | Mature | Mature |
| Implied growth (priced in) | -3.8% | — |
| P/B | 5.46 | 1.43 |
| P/S | 2.03 | 3.50 |
| EV/EBITDA | 11.6 | 9.9 |
| Revenue growth | +5.8% | -0.5% |
| Gross margin | — | 42.3% |
| Operating margin | 21.6% | 30.7% |
| Net margin | 13.2% | 25.0% |
| Return on equity | 35.5% | 10.2% |
| Return on assets | 5.2% | 7.9% |
| Return on invested capital | 8.4% | 10.2% |
| FCF yield | 4.9% | 10.0% |
| Dividend yield | 0.5% | — |
| Debt / equity | 4.50 | 0.00 |
| Current ratio | 0.54 | 2.09 |
| Altman Z (solvency) | 1.17 | 4.06 |
| Piotroski F (quality) | 6 / 9 | 7 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.