Droneshield vs Nextdc shares: Which ASX tech stock comes out on top?

Everyday Aussie investors looking for exposure to cutting-edge technology on the ASX might find themselves weighing up Droneshield Ltd (ASX: DRO) and Nextdc Ltd (ASX: NXT) . Both companies occupy high-potential corners of the tech sector, but their businesses – and their fundamentals – offer very different investment propositions. If you’re tossing up between Droneshield shares and Nextdc shares, here’s a side-by-side look at what sets each apart.

The case for Droneshield

Droneshield specialises in high-tech solutions that detect and defeat drones, using artificial intelligence-powered hardware and software. Its products target threats from drones used by criminals or terrorists, providing protection for government, military, airports, and critical infrastructure. With a global presence – operating across Australia, the US, and the UK – Droneshield’s offering is right at the intersection of defence, security, and new technology.

Looking at its numbers, Droneshield currently has a market cap of $1.69 billion, but it remains unprofitable according to its latest earnings per share figure (-$0.033). Notably, its P/E ratio is a staggering 433.75 – but with negative EPS, that ratio may be derived from underlying or future earnings rather than trailing profits, so I’d treat that with some caution. Droneshield doesn’t pay a dividend, in line with most early-stage tech or defence businesses. It has also seen a significant drop in sentiment, with a year-to-date return of -40.75%.

The case for Nextdc

Nextdc is Australia’s largest independent provider of data centre and interconnection services. Its big data centres house thousands of companies’ IT infrastructure, connecting businesses, cloud providers, and telecom carriers. Nextdc’s focus is on enabling the digital economy with secure, scalable, and highly connected spaces – making it a backbone provider for everything from large enterprise to small tech startups.

Fundamentally, Nextdc is considerably larger than Droneshield, with a market cap of $8.08 billion. Unlike many tech companies, its reported earnings per share is positive, at $0.122, and its P/E ratio – while high at 88.03 – is typical for a business reinvesting for expansion in a fast-growing, capital-intensive sector. Like Droneshield, Nextdc does not pay a dividend, choosing instead to channel its earnings into growth. Its year-to-date return is -12.92%, which although negative, is much milder compared to Droneshield’s recent performance.

Valuation comparison

There are a few key points of difference in the fundamentals:

Metric	Droneshield	Nextdc
Market Cap	$1.69 billion	$8.08 billion
P/E Ratio	433.75	88.03
Earnings Per Share (EPS)	-0.033	0.122
Dividend Yield	0.00%	0.00%
YTD Return	-40.75%	-12.92%

Note: Droneshield’s reported P/E ratio may be based on a different earnings measure (such as underlying or forecast earnings) than the negative EPS shown, which is why they appear inconsistent. Nextdc’s P/E and EPS figures are more aligned.

Neither company offers a dividend, so this is really a comparison of growth potential and business momentum rather than current income.

Recent share price momentum

Comparing recent share price performance up to 2 October 2026:

• Droneshield closed at $1.83, showing a 6.41% rise on the day, yet remains down 40.75% year-to-date.
• Nextdc closed at $10.74, rising 1.32% on the day, with a year-to-date decline of 12.92%.

Both companies had positive daily gains on 2 October 2026. However, over 2026 so far, Droneshield has suffered much steeper share price falls than Nextdc.

Which is the better buy?

Weighing it all up, I’d lean towards Nextdc as the stronger buy in this head-to-head. While both companies are unfranked and offer no dividend, Nextdc stands out for having positive earnings, a far more moderate (though still high) P/E ratio for its sector, and much better share price resilience in 2026. Droneshield’s technology is fascinating and its potential market is compelling, but the company is still unprofitable and investors have recently marked it down heavily, as shown in its 40%+ year-to-date drop. For me, that signals higher risk and a longer path to proven success.

Nextdc provides essential infrastructure for the digital world, enjoys significant scale, and is already generating profits, even if it trades at a growth premium. If I had to pick between them for an ASX tech buy right now, my pick would be Nextdc.

The post Droneshield vs NextDC: Which ASX tech share is the better buy? 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 DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

A superannuation balance of $950,000 is significantly higher than the Australian national average for all age groups.

It also comfortably exceeds what the Association of Superannuation Funds of Australia (ASFA) determines is necessary for a comfortable retirement.

It’s a solid amount of money to support a good retirement lifestyle, but there is an additional bonus. A balance as high as $950,000 can also generate a great passive income from ASX dividend shares.

Here’s how much you could earn.

What passive income could a $950,000 superannuation balance generate?

To calculate your potential annual passive income, you need to multiply your total superannuation balance by the overall dividend yield of your portfolio.

But obviously, the answer changes depending on what that yield is.

Generally, as your yield goes up, the passive income you can earn off the same balance also increases.

Break it down for me by yield

If your portfolio is low-yielding, at around 3%, you’ll be able to earn around $28,500 per year in passive income. That’s because $950,000 x 3% = $28,500 in dividend payments.

There are lots of stable options around this level. Investment bank Macquarie Group Ltd (ASX: MQG) yields around 3%, as does banking giant Commonwealth Bank of Australia (ASX: CBA) and conglomerate Wesfarmers Ltd (ASX: WES).

Then, if you increase your yield closer to 4%, you could earn a little more. A $950,000 portfolio could generate around $38,000 per year at this yield.

There are still lots of great options around the 4% level. Think mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO), or telcos like Telstra Group Ltd (ASX: TLS). Some of the other major banks, including National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ) also yield around this level at the time of writing.

If you can raise your yield higher towards 5%, your passive income would increase to around $47,500 every year. 

My top 5% yielding ASX shares would be defensive infrastructure companies like Transurban Group Ltd (ASX: TCL) or Dalrymple Bay Infrastructure Ltd (ASX: DBI). 

Raise your portfolio’s yield even higher to 6% and you could earn a $57,000 annual dividend income off the same superannuation portfolio. That’s a decent passive income!

Around this level, I’d lean towards shares like APA Group Ltd (ASX: APA) or AGL Group Ltd (ASX: AGL). These both have a long history of paying long term reliable dividends to shareholders and they also yield around the 6% level.

Can’t I just invest in the highest yield stock I can find so I can earn more off my superannuation balance?

There are dividend shares available which pay much higher yields, some which even exceed over 15%. 

But remember, the general rule is that the higher the yield, the more volatility and risk associated with that stock.

When it comes to ASX dividends, high-yielding shares could be cyclical businesses that fluctuate significantly with market cycles, niche companies with strong cash conversion, or perhaps they have discounted share prices. 

It doesn’t mean high-yield shares should be avoided, but instead, they should be part of a diversified portfolio.

The post How much passive income can I earn from a $950,000 superannuation balance? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Do you have $15,000 to invest?

If you do and don’t enjoy picking individual stocks, then it could be worth considering the exchange traded funds (ETFs) in this article.

They can be particularly attractive because they allow investors to access entire markets or investment strategies through a single trade.

With that in mind, here are three top ASX ETFs that investors could consider buying this October.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF could be a good option for investors who want to combine quality and value.

The fund invests in US companies that have sustainable competitive advantages, or economic moats.

These advantages can come from things such as powerful brands, high switching costs, cost advantages, intellectual property, or network effects.

It is worth noting that simply having a strong business isn’t enough to make the portfolio. The strategy also looks for companies trading at attractive prices relative to their fair value.

This means that rather than automatically owning the biggest companies in the market, the fund is trying to identify businesses capable of protecting their profits from competition while avoiding excessive valuations.

That could make the VanEck Morningstar Wide Moat ETF a top option for buy and hold investors.

iShares Global Consumer Staples ETF (ASX: IXI)

Another ASX ETF to look at is the iShares Global Consumer Staples ETF.

This fund provides investors with access to consumer staples stocks from around the world.

These are businesses selling products people tend to buy regardless of what is happening with the economy, including food, beverages, household goods, and personal care products.

That can make the sector quite different from areas such as technology or discretionary retail, where demand can move around significantly as economic conditions change.

This combination of recurring demand and global operations could make the iShares Global Consumer Staples ETF a strong choice for investors looking for a more defensive form of international exposure.

Vanguard FTSE All-World ex-US Shares Index ETF (ASX: VEU)

A final ASX ETF for investors to consider buying is the Vanguard FTSE All-World ex-US Shares Index ETF.

As its name implies, this fund invests across developed and emerging markets around the world, but deliberately leaves the United States out.

This could make it a good way to access parts of the global share market that can sometimes receive less attention than Wall Street.

It also means investors gain exposure to different industries, economic cycles, and sources of growth.

For those looking for a broad international investment without relying on US stocks, the Vanguard FTSE All-World ex-US Shares Index ETF could be worth a closer look.

The post Where to invest $15,000 in ASX ETFs in October appeared first on The Motley Fool Australia.

More reading

• 10 top ASX ETFs to watch in 2027
• 5 ASX ETFs for Aussie investors to buy and hold for 20 years
• Here are the most popular ASX share superannuation investments in SMSFs
• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• This ASX ETF could help protect your portfolio

Motley Fool contributor James Mickleboro has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.