Macquarie Group vs AMP: Which ASX financial stock is best?

Macquarie Group vs AMP shares: Which ASX financial stock stands out?

If you’re considering ASX financial stocks, Macquarie Group Ltd (ASX: MQG) and AMP Ltd (ASX: AMP) are both familiar names—though they play very different roles in Australia’s finance sector. Investors might be weighing up Macquarie Group vs AMP shares for solid income, growth potential, or pure exposure to the banking and investment space. Here’s how these two stack up right now.

The case for Macquarie

Macquarie Group is a global powerhouse in investment banking, asset management, and specialist advisory. While it is best known as Australia’s fifth-largest bank by market cap, its retail banking arm is just a slice of the wider business. Macquarie has footholds in 34 markets and, as of its company profile, is ranked among the top 50 global asset managers. Its expertise covers everything from infrastructure and commodities to renewable energy and resources.

In terms of key numbers, Macquarie is a true ASX heavyweight with a market cap of $94.41 billion. Its shares currently trade at a P/E ratio of 19.50, showing a more moderate valuation relative to the broader financial sector heavyweights. Dividend yield sits at 2.83%, franked to 35%. Earnings per share (EPS) come in at 12.669, so despite the generally cyclical nature of investment banking, profitability remains healthy.

For dividends, Macquarie has a solid history of regular payouts, albeit with some variability in franking percentages over time. Its most recent announced dividend was $4.20 with 35% franking.

The case for AMP

AMP Limited traces its roots back to 1849, giving it a uniquely deep history among ASX names. Today it operates across superannuation, life insurance, investment management, and some banking and wealth divisions. After demutualising in 1998, AMP has undergone serious transformation—shedding various assets, including the Collimate Capital business in 2022, and shifting its financial advice arm into a new joint venture in 2024, according to its most recent public description.

AMP’s fundamentals look quite different to Macquarie’s. Its market cap is $6.22 billion, making it much smaller in scale. The shares trade at a P/E ratio of 35.00—well above Macquarie’s—though the earnings per share are also much lower at just 0.074. The dividend yield now sits at 1.93% with 20% franking. Recent dividends have been modest—its last payment was 3 cents per share.

AMP’s story in recent years has been one of turnaround efforts and business refocus, with income investors seeing less predictability in dividend payments compared to Macquarie.

Valuation comparison

There are some clear valuation and size differences between these two:

Note: AMP’s reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.

Recent share price performance

Comparing recent share price action up to 29 September 2026:

• As of 29 September 2026, Macquarie Group closed at $247.09, having delivered a 23.7% year-to-date return. Its share price has shown steady momentum with only modest pullbacks during the period.
• On the same date, AMP closed at $2.58, boasting a strong 45.1% year-to-date gain. Recent price movement has tilted higher, although its share price remains far lower in absolute dollar terms and tends to be more volatile day-to-day.

Which is the better buy?

Both Macquarie Group and AMP are established finance names, but I’d lean strongly towards Macquarie at current levels. Its size, diversified global earnings base, and history of resilient profitability set it apart. The P/E ratio is reasonable for a major financial, especially given its international footprint and wide range of fee-earning businesses. Dividends are higher and more consistent, with better franking.

AMP, by contrast, is still rebuilding investor trust after a string of restructures. Its higher P/E and much lower EPS signal either a recovery story not yet proven, or simply a more speculative bet. While the 45.1% year-to-date return for AMP is impressive, it comes after a drawn-out period of underperformance and heavy restructuring. Dividends are lower and only lightly franked.

Unless you are looking specifically for a speculative turnaround play or believe in AMP’s fresh growth strategy, my pick would be Macquarie Group for its overall blend of income, growth, and business quality.

The post Macquarie Group vs AMP: Which ASX financial stock is best? 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 Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. 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.