CAR Group vs Seek: Which ASX 200 stock is better value?

CAR Group vs Seek shares: Which online classifieds company offers better value?

Australians weighing up online classifieds stocks might find themselves choosing between CAR Group Ltd (ASX: CAR) and Seek Ltd (ASX: SEK). Both companies have carved out leading roles in digital marketplaces, but their business models, recent performance, and value for investors are each surprisingly distinct. Whether you’re after dividends, growth, or just a smart long-term buy, there’s plenty to consider in a direct CAR Group vs Seek share showdown.

The case for CAR Group

CAR Group is a genuine heavyweight in the vehicle classifieds space. Best known locally for its flagship Carsales platform, CAR Group has expanded beyond Australia into digital marketplaces in South Korea, the US, and Latin America. According to its company profile, the group directly operates several overseas subsidiaries and holds a majority interest in Brazil’s webmotors.

Three fundamentals stand out for CAR Group:

• Market Cap: $8.34 billion, making it significantly larger than Seek Ltd in pure market size.
• Dividend Yield: 3.84%, with partial franking at 30% – not fully franked but still appealing given current rates.
• Earnings Per Share (EPS): $0.828, matched by a reported P/E ratio of 27.02.

CAR Group’s dividend has grown steadily over many years, reflecting a pattern of semi-annual increases. However, its year-to-date return has been negative at -24.5%, indicating the share price has faced a tough period.

The case for Seek

Seek is the dominant name in online employment classifieds, connecting jobseekers with employers and branching out into learning and business sale platforms. Seek’s reach extends well outside Australia across Asia and Latin America, and its inclusion of services like Seek Learning and Seek Volunteer gives it a somewhat diversified edge.

Key points for Seek:

• Dividend Yield: 4.33%, fully franked at 100%, which comes with maximum franking credits for eligible investors.
• Market Cap: $4.24 billion – noticeably smaller than CAR Group, but still a major ASX contender.
• P/E Ratio: 24.88, slightly below CAR Group, though the reported EPS is negative at -$0.858.

Notably, Seek has one of the most consistent and long-standing fully franked dividend histories among Australian tech-leaning businesses. However, its year-to-date return is -45.8%, which is a much steeper decline than CAR Group’s. Also, note: Seek’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.

Valuation comparison

Here’s how the numbers stack up side by side:

Seek edges ahead on dividend yield and investors get the bonus of full franking credits, which can be a decent tax benefit. CAR Group, on the other hand, is bigger, has a positive EPS, and more modest negative returns this year.

Recent share price momentum

Comparing recent share price performance up to 1 October 2026:

• As of 1 October 2026, CAR Group closed at $22.00. Its year-to-date return stands at -24.5%.
• As of 1 October 2026, Seek finished at $11.85, with a sharper year-to-date slide of -45.8%.
• Both shares have faced selling pressure over 2026, but Seek’s drop has been noticeably more severe over the same period.

Which is the better buy?

If I had to choose today, my pick would be CAR Group. Despite facing a tough year, it remains profitable with a positive EPS, a significantly larger market cap, and less severe recent losses than Seek. CAR Group’s dividend isn’t fully franked, but the blend of yield, size, and ongoing profitability tips the scale for me.

Seek’s fully franked, higher percentage dividend would normally be appealing. But the negative EPS and steeper price decline raise some red flags. The inconsistent EPS and P/E figures for Seek suggest underlying or adjusted measures are in play, so I’d approach its valuation with extra caution.

Of course, both businesses are proven leaders with global reach and clear digital moats. But for value and resilience right now, CAR Group looks just that bit steadier to me.

The post CAR Group vs Seek: Which ASX 200 stock is better value? 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended CAR Group Ltd. 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.