Zip vs WiseTech shares: which is the stronger growth prospect?

If you’re considering ASX growth shares for your portfolio, two very different technology names you might be weighing up are Zip Co Ltd (ASX: ZIP) and WiseTech Global Ltd (ASX: WTC). Both operate in tech-driven industries and have ambitious aims, but their fundamentals, business models, and recent share price action make for an intriguing comparison. Let’s look at Zip vs WiseTech shares to see which could be better positioned for strong growth from here.

The case for Zip

Zip is an Australian fintech focused on point-of-sale credit, best known for its buy-now, pay-later (BNPL) products like Zip Money and Zip Pay. Founded in 2013 with ambitions to disrupt the credit card sector, Zip has quickly broadened its reach and according to its most recent public description, now operates in 12 countries spanning Australia, New Zealand, and the US.

The BNPL sector is famously competitive, and after a hot run a few years back, many of the major players have struggled with profitability and regulation risks. For Zip, several fundamentals stand out:

• Market cap of $2.69 billion places it firmly in the mid-cap camp.
• Its P/E ratio is 23.84, which is relatively moderate for a tech business—if earnings can keep growing.
• Zip pays no dividend (Dividend Yield 0.00%), consistent with its growth focus.
• Year-to-date (YTD) Return is deeply negative at -34.4%, suggesting a tough period for the stock price.

Zip’s business now spans several countries and it continues to target both consumers and merchants with its fee-based and interest-free payment services. With net positive EPS reported ($0.091 per share), there are signs that Zip is moving toward profitability, but ongoing sector pressure and regulatory scrutiny may weigh on near-term growth.

The case for WiseTech

WiseTech Global is a heavyweight in Australian technology, specialising in logistics and supply chain software. Its main product, CargoWise One, helps some of the world’s largest freight companies—including Toll and DHL—manage logistics operations efficiently. Founded in 1994, WiseTech has spent decades building its global presence, now supporting customers across all continents according to its most recent profile.

Key numbers for WiseTech:

• It boasts a much larger market cap of $11.31 billion, showing its global scale and sector influence.
• The P/E ratio is higher at 44.0, reflecting considerable market optimism and perhaps the premium placed on scalable software.
• Dividend Yield is modest at 0.65%, but importantly, all dividends are fully franked (Franking 100%), which is attractive to many Australian investors.
• Earnings per share come in at $0.485, with a dividend per share of $0.22.
• Like Zip, the stock has underperformed in 2026 so far: the YTD Return is a challenging -50.6%.

While its business is less consumer-facing and more focused on enterprise software than Zip, WiseTech operates in a logistics sector where efficiency and global reach are increasingly prized. Regular fully franked dividends show WiseTech’s ability to return capital to shareholders, even as it continues to chase global growth.

Valuation comparison

With both companies squarely in the tech sector but operating different models, their fundamental ratios tell an interesting story:

Metric	Zip	WiseTech
Market Cap	$2.69 billion	$11.31 billion
P/E Ratio	23.84	44.00
Dividend Yield	0.00%	0.65% (fully franked)
Earnings per Share	$0.091	$0.485
Dividend per Share	N/A	$0.22

It’s worth noting that WiseTech’s higher P/E ratio suggests much loftier market expectations for growth, even as its recent share price has stumbled. Only WiseTech offers a (small, franked) dividend at present. Zip’s more modest P/E may indicate more downbeat expectations, but it also signals less pricing in of future growth (or potentially more risk).

Recent share price momentum

Comparing price movements as of 9 October 2026:

• Zip closed at $2.16, up 3.85% for the day, but down sharply YTD (-34.4%). Recent volatility was high, with a double-digit one-day fall in late September.
• WiseTech closed at $33.63, up 4.25% for the day, but carries a steeper YTD decline of -50.6%. In the late September to early October period, it also displayed big swings but managed some strong daily rebounds.

Which is the better buy?

Looking at Zip vs WiseTech shares, I’d lean toward WiseTech as the stronger growth prospect from here—despite its recent underperformance and high valuation. WiseTech operates in a global market that’s only becoming more vital with the rise of e-commerce, supply chain digitalisation, and global trade complexity. While the P/E multiple (44x) is steep, WiseTech combines positive earnings, a consistent (if modest) dividend, full franking, and a broad, defensive customer base. That’s a solid foundation for recovery and future growth if the company executes.

Zip, while interesting as a potential turnaround, remains heavily exposed to the fortunes of the BNPL sector—a space facing consumer fatigue, intensifying competition, and ongoing regulatory risk. Its lack of dividend and sharply negative share price momentum make it a more speculative play in my view.

Neither stock has delivered great returns YTD. But for long-term growth, my pick would be WiseTech. I think its sticky enterprise relationships and recurring revenue could underpin a stronger rebound and compounding power over time, whereas Zip feels like a riskier bet whose story will need a major catalyst to reignite.

The post Zip vs WiseTech: Which is the superior ASX growth stock today? appeared first on The Motley Fool Australia.

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• Down more than 50%, are Zip shares too cheap to ignore?
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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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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.

Cheap ASX shares can be deceptive.

Sometimes a low valuation is simply the market recognising that earnings are about to fall. Other times, though, the share price does not seem to reflect just how much a business could be earning a few years from now.

That second group is what interests me.

I have found three ASX shares where the forward numbers look increasingly difficult to ignore. They operate in completely different industries and come with very different risks, but I think all three could be worth considerably more if current earnings expectations prove even broadly correct.

The first one is already reasonably priced today. Look another year or two ahead, though, and the valuation starts to look extraordinary.

Northern Star Resources Ltd (ASX: NST)

Northern Star shares are trading around $24.76 at the time of writing.

On FY27 earnings alone, I would not necessarily describe that price as dirt cheap.

Consensus estimates point to earnings per share (EPS) of $1.35, putting the gold miner on a forward price-to-earnings (P/E) ratio of around 18 times.

That looks reasonable enough for one of Australia’s largest gold producers. But the investment case changes materially when I look further ahead.

Analysts expect EPS to jump to $2.41 in FY28 and $3.31 in FY29. At today’s share price, those estimates imply P/E ratios of roughly 10 times and 7.5 times, respectively.

That is where Northern Star starts to look seriously undervalued to me.

The dividend outlook moves in the same direction. Consensus forecasts point to dividends per share of 51.6 cents in FY27, 73 cents in FY28, and 86.2 cents in FY29. At the current share price, the FY29 forecast would represent a dividend yield of around 3.5%.

Of course, there is an important reason the market may be reluctant to fully price those estimates in today. Northern Star sells gold, and the gold price will have a major influence on whether those earnings forecasts are achievable.

If the gold price remains higher for longer and production growth plans are delivered, I think it is very likely there will be a large increase in Northern Star’s profits.

But it is important to acknowledge that if gold falls sharply instead, those EPS estimates could come down just as quickly.

That commodity sensitivity is the main risk I would keep in mind. But for investors who want gold exposure and are comfortable with that uncertainty, I think the potential reward is substantial.

An ASX share trading at around 7.5 times FY29 forecast earnings does not need everything to go perfectly to get my attention.

And Northern Star is only the first of my three picks.

Universal Store Holdings Ltd (ASX: UNI)

My second pick comes from a completely different corner of the market.

Universal Store shares are trading around $8.04 at the time of writing, and I think the current valuation leaves plenty of room for the business to keep delivering.

The retailer sits behind brands including Universal Store, Perfect Stranger, and Thrills, giving it exposure to younger consumers across fashion and lifestyle categories.

Consensus estimates currently point to EPS of 57.8 cents in FY27, rising to 63.2 cents in FY28, and 68.9 cents in FY29.

At $8.04, that puts the shares on roughly 14 times FY27 earnings, falling to around 13 times FY28 earnings and less than 12 times FY29 earnings. I think that is a low price to pay if Universal Store can continue growing profits at the rate analysts expect.

The dividend makes the valuation even more interesting. Consensus forecasts point to dividends of 45 cents per share in FY27, 48 cents in FY28, and 53 cents in FY29.

At today’s price, the FY27 estimate represents a dividend yield of around 5.6%. By FY29, that potential yield rises to approximately 6.6%.

But retail shares obviously come with risks. Consumer spending can weaken, fashion preferences can change quickly, and a retailer still has to get its product, pricing, inventory, and store strategy right.

But at the current valuation I am not being asked to pay a growth-stock multiple for Universal Store. At around 14 times FY27 earnings, I think there is already a reasonable amount of caution built into the price.

If the company can keep lifting EPS towards 69 cents over the next few years while maintaining a strong dividend, I think the current share price could ultimately prove too low.

Zip Co Ltd (ASX: ZIP)

Zip is probably the highest-risk pick of these ASX shares, but it may also offer the most obvious valuation upside.

The shares are trading around $2.23 at the time of writing. Consensus forecasts point to EPS of 15 cents in FY27, 18 cents in FY28, and 22 cents in FY29. That means investors are paying around 15 times FY27 earnings today.

Already, I think that looks quite reasonable for a business expected to grow profits strongly.

But again, the outer years are where things become much more interesting. The P/E ratio falls to around 12.4 times FY28 earnings and just over 10 times FY29 earnings if the forecasts are achieved.

Meanwhile, EPS would increase by almost 47% between FY27 and FY29. That combination is what makes Zip look undervalued to me.

The company does still have plenty to prove. I want to see Zip continue taking a greater share of the payments market in the United States and Australia, while growing transaction volumes and its customer base.

Just as importantly, that growth needs to be disciplined. Adding users is not particularly valuable if bad debts rise too quickly alongside them. Credit quality needs to remain under control as the business gets larger.

If Zip can balance those two sides of the equation, growing payment volumes while maintaining sensible lending standards, I think the earnings forecasts become much easier to believe.

And if the company eventually earns 22 cents per share while continuing to grow, I struggle to see why investors would permanently value it at around 10 times earnings.

That does not mean the path will be smooth. Zip shares have been extremely volatile before, and sentiment towards buy now, pay later businesses can change quickly.

But at the current price, I think the valuation gives me enough room to accept that uncertainty.

Foolish takeaway

I think the market is being too cautious about what these businesses could earn over the next few years.

There is certainly some uncertainty surrounding all three, but I believe their growth prospects make the current valuations hard to ignore.

I’d be happy to buy at today’s prices and give them time to prove their worth.

The post 3 dirt cheap ASX shares I think are undervalued today appeared first on The Motley Fool Australia.

More reading

• Evolution Mining vs Northern Star Resources: Which gold stock is better for a $1,000 investment?
• Here are the top 10 ASX 200 shares today
• Down more than 50%, are Zip shares too cheap to ignore?
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Grace Alvino has positions in Northern Star Resources. 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 Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Scentre Group vs GPT Group shares: Which ASX REIT is the better buy?

If you’re weighing up Scentre Group (ASX: SCG) and GPT Group (ASX: GPT) shares, you’re not alone. Both are heavyweights in the Australian real estate investment trust (REIT) sector, and each brings something different to the table. For investors keen on passive income and exposure to commercial property, these ASX REITs offer a compelling head-to-head — especially with both now trading below where they started the year. Which is more likely to beat the ASX 200 from here? Let’s take a closer look.

The case for Scentre Group

Scentre Group is best known for owning and operating 42 Westfield shopping centres across Australia and New Zealand, including many of the region’s flagship retail destinations. Formed in 2014 from the restructure of Westfield Group, Scentre has built a diversified, marquee portfolio with more than $51 billion in retail assets under management, as of its company profile. The group’s strategy centres on anchoring with major retail tenants, while attracting a wide mix of specialty retailers, entertainment, and lifestyle operators.

Several fundamentals jump out. Scentre’s market cap stands at $18.04 billion, putting it among the ASX’s largest landlords. The shares trade on a price-to-earnings (P/E) ratio of 9.17, with an earnings per share (EPS) of $0.376 and a dividend yield of 5.25%. Year to date, though, the share price has lagged, dropping 13.5%. On the dividends front, Scentre’s most recent payments show little franking, and its last interim payout was $0.0922 per share.

The case for GPT Group

GPT Group brings a broader property focus. One of Australia’s oldest listed trusts, GPT’s $8.72 billion market cap reflects a substantial, though smaller, footprint than Scentre. GPT owns and manages a spread of retail, office, and logistics assets with funds under management topping $36 billion, according to its most recent public description. Uniquely among large ASX REITs, GPT has steadily grown its industrial property portfolio — roughly 28% as of its last update — which could position it well if e-commerce and warehousing trends persist.

GPT currently sits on a P/E multiple of 8.29 and EPS of $0.549. Its dividend yield is a touch higher than Scentre’s at 5.33%, with the last interim dividend coming in at $0.1225 per share (again, with no franking). Like Scentre, GPT’s shares have struggled so far this year, down 13.8% year-to-date.

Valuation comparison

Both Scentre Group and GPT Group are trading at relatively similar valuation multiples, but there are a few notable differences worth spelling out:

	Scentre Group	GPT Group
Market Cap	$18.04b	$8.72b
P/E Ratio	9.17	8.29
Dividend Yield	5.25%	5.33%
Dividend per Share	$0.18	$0.24
EPS	0.376	0.549
Year-to-Date Return	-13.5%	-13.8%

Note: GPT’s P/E and EPS numbers are mathematically consistent, but Scentre’s are less so, suggesting the P/E may be based on an alternative earnings measure.

Scentre is the bigger company by market capitalisation and has a marginally higher P/E. GPT edges ahead slightly on dividend yield and dividend per share, with both offering yields well above cash rates — a big draw for income-focused investors. Both have paid unfranked dividends lately, so franking isn’t a distinguishing factor.

Recent share price momentum

Let’s see how both performed recently. Using closing prices from 9 October 2026 — the most recent shared date in the data:

• Scentre closed at $3.45 per share, up 0.29% on the day, but still down 13.5% year-to-date.
• GPT closed at $4.55 per share, up 1.11% on the day, with a yearly decline of 13.8%.

While both stocks have suffered through the year, GPT showed a slightly stronger daily move on this shared date. Overall, though, they’ve tracked a remarkably similar negative trend during 2026, each surrendering well over 13% of their value since the start of the year.

Which is the better buy?

For my money, I’d lean towards GPT Group for a shot at outperforming the ASX 200 from here. Both businesses offer similar dividend yields and have taken a beating this year, but GPT’s portfolio mix could be a quiet advantage, particularly its growing industrial and logistics component. That gives GPT a bit more exposure to property trends beyond retail shopping centres — an area that’s seen pockets of resilience and growth recently.

GPT also scores slightly better on headline valuation metrics: its P/E multiple is lower, its dividend yield is marginally higher, and its EPS is well ahead of Scentre’s. Scentre is by far the larger landlord and operator of blue-chip retail assets, but the challenging retail backdrop and comparable yield make GPT look more interesting to me on risk/reward grounds right now.

Of course, both are trading well below their 2026 highs — not unusual for REITs in a rising interest rate environment. As ever, investors looking for outperformance versus the ASX 200 will want to keep an eye on further shifts in rates and property values. But today, my pick would be GPT Group: it’s cheaper, offers a better income stream, and has that diversified edge that could help it rebound sooner.

The post Scentre Group vs GPT Group: Which ASX REIT is more likely to beat the market? appeared first on The Motley Fool Australia.

More reading

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• How much superannuation do I need to earn $70,000 per year in passive income?

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.