TechnologyOne vs Life360: Which ASX tech share has more upside?

Technology One vs Life360 shares

Plenty of Aussie investors are looking at technology shares for long-term growth, and right now, two names keep popping up: TechnologyOne Ltd (ASX: TNE) and Life360 Inc (ASX: 360). But which one has the best upside from here? Whether you’re after profits, dividends, or a stake in the next big thing, let’s see how these companies stack up.

The case for TechnologyOne

TechnologyOne is a heavyweight in Australia’s tech scene, creating enterprise software that helps its more than 1,000 clients — mainly government agencies, councils, and big organisations — run smoother operations. This Brisbane-based business has grown its footprint into six countries, focusing on integrated, user-friendly IT solutions.

Looking at the fundamentals, TechnologyOne is clearly a mature, profitable business:

• Market cap is a hefty $9.59 billion, making it one of the largest software companies on the ASX.
• P/E ratio stands at 68.51, reflecting strong investor confidence but also a premium to many other listed companies.
• Their dividend yield is at 0.96%, not huge, but decent for a technology outfit, especially with 75% franking on recent payouts. The trailing dividend per share sits at $0.28.

According to its most recent public description, TechnologyOne claims more than 1,000 customers across seven industry segments, which adds to its stability and resilience.

The case for Life360

Life360 is a US-based developer best known for its family safety app, letting users share locations, communicate, and get real-time alerts and driver reports. The app includes features like roadside assistance, driver monitoring, theft ID, and medical help — and with its recent entry into ad-tech, it’s chasing new revenue streams as well. Life360 boasts more than 104 million monthly active users.

Life360’s raw fundamentals tell the story of a growth-focused business:

• Market cap is $4.72 billion, about half the size of Technology One but still large for an ASX tech company.
• P/E ratio of 23.70, much lower than TechnologyOne’s, and EPS of $0.573. (Note: While EPS is higher here, P/E ratios can reflect different underlying measures or one-off factors, so keep this context in mind.)
• No dividend at all — classic for a company reinvesting in expansion, especially with a global user base and ad-tech ambitions.

Life360’s offering is consumer-facing and more global, with new growth engines like advertising now in play.

Valuation comparison

Here’s a quick look at the key numbers:

Note: Life360’s reported P/E and EPS both suggest it’s profitable on a per-share basis, while TechnologyOne’s much higher P/E suggests the market prices in strong future growth or stability. Also, Life360 pays no dividend, while TechnologyOne offers a small franked yield, which may be attractive if that regular cashflow matters for you.

Recent share price performance

Comparing recent share price data until 25 Sep 2026:

• TechnologyOne: Closed at $29.29, down 1.2% on the day. Its year-to-date return is a positive 5.0%.
• Life360: Closed at $19.32, up a tiny 0.05% on the day. But its year-to-date return is down sharply, at -42.4%.

So, while both have had daily ups and downs lately, TechnologyOne’s shares have held up much better so far in 2026, while Life360 has suffered a significant drawdown.

Which is the better buy?

This is where it gets interesting. If I’m weighing pure upside potential, Life360 stands out. Its P/E ratio is well below TechnologyOne’s, even though its EPS is higher. It just reported a profit, has a massive (user base, and is chasing new ad-driven revenue — all classic ingredients for a beaten-down growth stock to rebound hard if things click. But there are clear risks: year to date, Life360 shares are down over 40%, a real blow for any investor who bought in a few months back.

TechnologyOne, meanwhile, is the definition of dependable: strong client base, reliable profits, and a long history of resilience. Investors do pay a steep premium for that consistency, with a P/E near 70 and a dividend yield below 1%. If you want steady, relatively lower-risk exposure in the Aussie tech sector, I can see the appeal — though I doubt you’ll get explosive upside from here, unless earnings go through the roof.

So here’s my take: For pure upside, my pick would be Life360. It’s coming off a rough patch, is priced much more modestly, and any positive surprise — user growth, new monetisation, or acquisition news — could see a sharp recovery. I’d call it a higher-risk, higher-reward option. If you want to sleep soundly and collect those franked dividends, TechnologyOne might be the safer, steadier bet, but if I had to choose on upside, Life360 gets my nod.

The post TechnologyOne vs Life360: Which ASX tech share has more upside? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.