Fortescue vs PLS Group shares: Which blue chip miner has more upside?

When it comes to ASX-listed mining giants, Fortescue Ltd (ASX: FMG) and PLS Group Ltd (ASX: PLS) both stand out for investors seeking exposure to the resources sector. While both operate out of Western Australia and count as blue-chip names in their field, their businesses are shaped by very different commodities: iron ore for Fortescue, and lithium (with a dash of tantalum) for PLS Group. With both sectors facing different market dynamics, it’s worth digging into the numbers to see which share might offer more upside from here.

The case for Fortescue

Fortescue is one of the world’s major iron ore producers, operating extensive mines and infrastructure in the Pilbara. As of its company profile, Fortescue’s integrated operations cover multiple mining hubs, its own heavy haul rail, and port facilities at Port Hedland. It has long leveraged its scale to keep costs competitive, making it a key supplier to steelmakers worldwide.

Notable points from Fortescue’s current stats:

• Market cap of $49.85 billion, making it a heavyweight on the ASX.
• P/E ratio of 12.08, notably lower than PLS Group’s.
• A generous dividend yield of 6.67%, fully franked at 100%.
• Earnings per share of $0.931, with a dividend per share of $1.08, suggesting strong cash return to investors (though dividend yields can fluctuate).

One particularly attractive factor is the consistent, fully franked dividends Fortescue has paid, even as iron ore markets have gone through some turbulence.

The case for PLS Group

PLS Group, formerly Pilbara Minerals, is well known as a top lithium and tantalum miner. The company’s mainstay is the Pilgangoora project in the Pilbara—one of the largest hard-rock lithium-tantalum deposits globally. According to its most recent public description, the company’s reach now extends to Brazil through its Colina lithium project. PLS Group has made impressive strides from exploration to production in less than four years and is aggressively expanding its global footprint.

The most eye-catching fundamentals for PLS Group:

• Market cap of $12 billion, making it smaller than Fortescue but still a top ASX resource name.
• A P/E ratio of 22.92, substantially higher than Fortescue’s.
• Dividend yield of 1.35%, also fully franked.
• EPS of $0.161 and dividend per share of $0.05.

While its dividend is modest for now, PLS Group is clearly still focused on early-stage expansion in a sector (lithium) that’s pegged to major growth in battery and EV markets.

Valuation comparison

Presented side-by-side, here’s how the key stats stack up:

Metric	Fortescue	PLS Group
Market Cap	$49.85 billion	$12.00 billion
P/E Ratio	12.08	22.92
Dividend Yield	6.67% (100% franked)	1.35% (100% franked)
Earnings per Share	$0.931	$0.161

Note: P/E ratios for both companies are based on reported figures, but if you do the math, Fortescue’s EPS and P/E are roughly consistent; likewise for PLS Group, though payout ratios differ. Both companies’ franked dividends are a plus for Australian investors.

Fortescue trades at a P/E almost half of PLS Group’s, despite offering a substantially higher dividend yield. That reflects current market scepticism around iron ore pricing, but also perhaps optimism on lithium’s future for PLS Group.

Recent share price momentum

Comparing recent performance as at 5 October 2026:

• Fortescue closed at $16.19, after a flat day, and has returned -21.5% year to date.
• PLS Group closed at $3.72, up 0.5% that day, and is down -11.1% year to date.

So both shares are in negative territory this year, but PLS Group has held up better, falling about half as much as Fortescue over 2026 so far.

Which is the better buy?

Looking at the fundamentals, Fortescue offers a much higher fully franked dividend yield and a far lower P/E ratio than PLS Group. That tells me the market sees more risk or less growth in old-school iron ore compared to the lithium sector, which is still brimming with hype and optimism. However, Fortescue’s ability to pay out substantial and consistent dividends, even while its share price is down more than 20% year to date, is hard to ignore for income-focused investors.

PLS Group, in contrast, is delivering modest profits and a small, fully franked dividend, but it’s valued at almost double Fortescue’s earnings multiple. That’s a big vote of confidence in the future of battery materials, but with a dividend that’s more a gesture than a consistent income stream, and a share price that’s still down 11% year to date.

If you’re looking for robust, income-driven returns and value, I’d lean toward Fortescue. If you’re happy to take on more volatility for the chance of outsized growth—should the lithium sector take off again—PLS Group is the pick. Personally, given the current data, my pick would be Fortescue for its combination of scale, franked dividends, and more appealing valuation, with the caveat that its upside rests on iron ore not staying depressed for too long. PLS Group could have more explosive upside if lithium surprises to the upside, but at today’s pricing, I think Fortescue’s risk-reward trade-off stands out more.

The post Fortescue vs PLS Group: Which ASX mining share is the better buy? appeared first on The Motley Fool Australia.

More reading

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• PLS vs BHP: Which ASX 200 mining stock looks better today?
• Fortescue vs National Australia Bank: Which ASX blue chip is the better buy this month?
• PLS Group vs Mineral Resources: ASX mining shares compared
• Is the Fortescue share price a cheap buy?

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 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.

Domino’s Pizza Enterprises vs Guzman y Gomez shares

If you’re hungry for fast food stocks on the ASX, Domino’s Pizza Enterprises Ltd (ASX: DMP) and Guzman y Gomez Ltd (ASX: GYG) are two tempting names. Both companies run sizeable quick-service restaurant networks with bold growth ambitions, but their shares come with very different price tags and outlooks. So, which looks better value today?

The case for Domino’s Pizza Enterprises

Domino’s Pizza Enterprises is Australia’s largest pizza chain, with operations spanning not just locally but across Europe and parts of Asia. According to its company profile, it controls the Domino’s brand in countries including Australia, New Zealand, Japan, Taiwan and several European nations. Domino’s has also extended its reach into Malaysia, Singapore and Cambodia as of its most recent public description.

On the numbers front, Domino’s is sitting on a $1.87 billion market cap and offers a dividend yield of 2.91%. That’s pretty solid for a fast food business, and investors have banked fully franked dividends in the past – though recent payments have not been franked. The company’s P/E ratio stands at 29.61, though its latest earnings per share (EPS) figure is negative at -1.418. That mismatch suggests the P/E may be based on an adjusted or forward measure rather than statutory profit. Note: Domino’s reported P/E ratio may be based on a different earnings measure than the EPS shown, so they appear inconsistent.

Year to date, Domino’s shares have slipped 3.2%. Its dividend history shows regular payments over many years, but recent dividends have switched from full franking to 0% franking. That may impact after-tax yield for local investors.

The case for Guzman y Gomez

Guzman y Gomez is a homegrown, Mexican-inspired fast food operator and franchisor. The company’s main focus is its growing Australian footprint, with an ambition (per its company profile) to expand toward 1,000 local stores over the next couple of decades. Internationally, it’s kept a footprint in Singapore and Japan but has exited the US market as of May 2026 to double down on core regions.

Guzman y Gomez sports a larger market cap at $2.57 billion and an impressive 18.2% year-to-date share price gain. Its P/E ratio comes in steep at 62.21, considerably higher than Domino’s. However, its latest EPS is positive at 0.404 and, notably for income-focused investors, its current dividend yield is 1.34% with 100% franking on all recent payouts.

The company paid its first dividends in 2026, including a final, interim, and special dividend, all fully franked. That means Guzman is a much newer name on the dividend scene, but every payout so far maximises franking credits, which provides extra value for some investors.

Valuation comparison

There are some clear contrasts in the numbers here, especially with respect to valuation and income:

Metric	Domino’s Pizza Enterprises	Guzman y Gomez
Market Cap	$1.87 billion	$2.57 billion
P/E Ratio	29.61	62.21
EPS	-1.418	0.404
Dividend Yield	2.91%	1.34%
Franking	0% on recent dividends	100% on recent dividends
Dividend per share	$0.58	$0.34

A few things stand out to me:

• Guzman y Gomez trades at a much higher P/E, suggesting the market is pricing in faster expected growth (or perhaps factoring in its more recent profitability). Meanwhile, Domino’s posted a negative EPS but still carries a P/E ratio—so that headline multiple may not reflect underlying earnings as neatly as it seems.
• Domino’s currently offers a higher yield but with recent dividends not franked, whereas Guzman y Gomez’s yield is lower but fully franked, which can be a game-changer for Australian shareholders looking for tax-effective income.
• In terms of size, Guzman y Gomez is now the larger business by market cap.

Recent share price momentum

Comparing recent share price performance as at 2 October 2026:

• Domino’s Pizza Enterprises closed at $19.76 on 2 October 2026, down 3.2% year-to-date.
• Guzman y Gomez closed at $25.12 on 2 October 2026, up a whopping 18.2% year-to-date.
• Short-term movement reveals Domino’s shares have been relatively soft, while Guzman y Gomez has enjoyed recent positive momentum, with a more pronounced upward trend over the past few months.

Which is the better buy?

Personally, I’d lean toward Guzman y Gomez as the better value play today—despite its higher P/E ratio and lower stated yield. Guzman y Gomez is delivering positive earnings, fully franked dividends, and strong share price momentum—plus the market seems to be rewarding its clear growth strategy and recent profitability. The promise of future growth is being bid up, but that’s common with strong consumer brands gaining ground.

Domino’s, on the other hand, is offering a higher yield but has posted a recent loss, and its dividend franking has dried up. The negative EPS clouds the value of its headline P/E and puts question marks over near-term earnings recovery.

If growth and fully franked income are your priority, Guzman y Gomez looks like the fresher, more energetic pick to me. Domino’s might appeal as a recovery story if you believe strongly in its turnaround potential, but based on the numbers in front of me, my pick would be Guzman y Gomez.

The post Domino’s Pizza Enterprises vs Guzman y Gomez: Which fast food stock offers better value? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares
• 2 top ASX shares to buy and hold for the next decade
• These are the 10 most shorted ASX shares

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 Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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.

For retirees, a good ASX dividend share needs to offer more than a high headline yield.

I would want businesses with strong earnings, the capacity to continue paying dividends, and the potential for income to grow over time.

These are three ASX passive income shares I particularly like.

Coles Group Ltd (ASX: COL)

Coles would be one of my first choices because grocery spending tends to be relatively resilient.

Households may change what they buy when budgets become tighter, but supermarkets remain an essential part of everyday life. That gives Coles an earnings base that I think suits investors who depend on their portfolio for income.

There is also growth behind the story. Coles generated earnings per share (EPS) of 81.3 cents in FY26. Consensus forecasts point to 98.2 cents in FY27, $1.05 in FY28, and $1.15 in FY29.

I expect that profit growth will create room for dividends to rise as well.

For retirees, I think that combination of defensive demand and potentially rising income is compelling.

Telstra Group Ltd (ASX: TLS)

Telstra could be another quality share for an ASX passive income portfolio.

Mobile and internet services have become essential for households and businesses, giving Australia’s largest telecommunications company a substantial base of recurring demand.

I also think Telstra’s investment case has improved because management is aiming to grow the business rather than simply protect the dividend.

Under its Connected Future 30 strategy, Telstra is targeting mid-single-digit growth in cash earnings through to FY30 and has expressed an ambition to deliver a sustainable and growing dividend.

That is the direction I would want to see as a retiree.

I would still expect periods of share price volatility, but the underlying telecommunications demand gives me confidence in Telstra as a long-term income holding.

Commonwealth Bank of Australia (ASX: CBA)

CBA would round out my three picks.

The bank is not necessarily the highest-yielding option on the ASX, but I think the strength of the franchise counts for a lot when passive income reliability is important.

CBA has leading positions across deposits and home lending, a huge customer base, and one of Australia’s strongest digital banking platforms.

That has helped it consistently generate the profits needed to fund substantial fully-franked dividends.

CBA paid $5.05 per share in FY26. Consensus forecasts point to $5.15 in FY27 and $5.30 in FY28, alongside modest earnings growth over the same period.

The shares can trade at a premium valuation, and that is something I would consider before buying. But for retirees looking beyond the highest immediate yield, I think CBA’s financial strength and dividend record make it one of the ASX banks worth considering.

Foolish takeaway

For retirees looking for passive income, I think Coles, Telstra, and CBA are three strong options to consider.

Each has an established business, dependable cash flow, and the potential to keep growing dividends over time.

The post My favourite ASX passive income shares for retirees appeared first on The Motley Fool Australia.

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• If I invest $10,000 in CBA shares today, what could they be worth in October 2027?
• How much must I invest in Telstra shares to earn a $1,000 passive income in 2027?
• How much could the big 4 banks’ share prices fall?

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.