IDP Education vs G8 Education shares: Which beaten-down stock could rebound?

Both IDP Education Ltd (ASX: IEL) and G8 Education Ltd (ASX: GEM) have suffered severe share price declines lately, making them prime hunting ground for bargain seekers. If you’re weighing up IDP Education vs G8 Education shares, you’re comparing two education-focused businesses – but with very different operations, risk profiles, and upside potential. Let’s dive into what makes each one standout.

The case for IDP Education

IDP Education is a global player offering English language testing and international student placement services. It’s best known for co-owning IELTS – one of the world’s most prominent English testing systems, widely accepted by governments, universities, and accreditation bodies. Alongside English language assessments, IDP offers international student placement, operates teaching schools in Southeast Asia, hosts education events, and provides consulting services, with offices in more than 50 countries.

Looking at the numbers, IDP Education clocks in with a market cap of $553.89 million and a P/E ratio of 46.22. The trailing dividend yield stands at 4.46%, and year to date, the share price has slumped by 63.5%. According to the latest data, earnings per share sit at $0.044 and dividends per share at $0.09. Franking percentages on dividends have declined recently, with the most recent dividend unfranked – a change from higher franking rates in previous years.

The case for G8 Education

G8 Education operates early childhood education and care centres across Australia, focusing on childcare and early learning. The group’s scale makes it a well-known name in the local sector, emphasising quality and developmental care from infancy through preschool.

Fundamentals show G8 Education with a far smaller market cap at $72.53 million and a P/E ratio of 5.26. The last reported dividend yield is a staggering 20.62% (with 100% franking), and dividends per share stand at $0.06. Notably, the company’s reported earnings per share is negative at –$0.472. Year to date, G8 Education’s shares have tumbled 85.9%, making it one of the market’s hardest hit. Its dividends have consistently been fully franked, offering an added tax benefit for eligible investors.

Valuation comparison

There are some sharp contrasts between IDP Education and G8 Education on core metrics:

Metric	IDP Education	G8 Education
Market Cap	$553.89 million	$72.53 million
P/E Ratio	46.22	5.26
Dividend Yield	4.46%	20.62%
Dividend Franking (latest)	0% (recent, previously higher)	100%
Earnings per Share	0.044	-0.472

Note: G8 Education’s reported P/E ratio does not align with its negative EPS, which suggests the P/E could be based on a different earnings measure (such as underlying or forecast earnings).

IDP Education trades at a much higher multiple, while G8 Education, on paper, looks extremely “cheap” on these numbers – although the underlying business challenges must not be ignored, given the negative EPS.

Recent share price momentum

Comparing recent share price performance up to 30 September 2026:

• As of 30 September 2026, IDP Education closed at $2.02, having gained 3.6% that day, but still down 63.5% year to date.
• On the same date, G8 Education closed at $0.10, unchanged for several days but having fallen 85.9% over the year to date.

Both companies have endured significant value destruction over 2026 so far, but G8’s drop has been notably steeper.

Which is the better buy?

When I weigh these two, I’m looking for not just the biggest discount, but the highest probability of sustainable upside. G8 Education’s 20%-plus dividend yield, with full franking, leaps off the page – but the fact that earnings per share is negative (and the share price has been absolutely smashed) really worries me. A dividend that high against a negative EPS suggests a major risk that payouts could be cut or stopped, and the business model might be under significant stress.

By contrast, IDP Education’s P/E ratio is lofty compared to G8, and the yield is more moderate. However, IDP’s core English language testing and international education business has global scale and is closely tied to long-term student mobility and international migration trends – giving it growth levers that are less cyclical than local childcare. While its dividend franking has recently dropped to zero, prior years had partially franked payments, so this may not be a permanent change.

Both stocks are deeply beaten down, but I’m more comfortable backing a recovery in IDP Education. The worldwide demand for English language proficiency and overseas education isn’t going away, and a market cap of over $500 million suggests the company has financial strength to weather downturns. G8, on the other hand, may offer a monster yield – but with such a steep share price fall and negative earnings, I fear the apparent bargain could be a value trap. My pick for future upside is IDP Education.

The post IDP Education vs G8 Education: Which battered ASX stock could rebound? 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 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.

CSL Ltd (ASX: CSL) has given investors another reason to take a closer look at the healthcare giant.

This week, the biotech company announced a new drug development partnership, adding another potential growth opportunity to its pipeline.

With CSL shares trading around $177 on Tuesday, would I buy? Let’s dig deeper into things.

What is the big news?

CSL has entered an exclusive global partnership with Alentis Therapeutics to develop and commercialise lixudebart.

The investigational treatment targets claudin-1 and is currently in a Phase 2 trial for a rare autoimmune disease that can cause rapid and irreversible kidney damage. CSL and Alentis also plan to explore its potential in other kidney and liver diseases.

CSL stated that it will pay Alentis US$355 million upfront and fund the planned development program. If the treatment eventually reaches the market, CSL would receive 55% of global profits, with Alentis receiving the remaining 45%.

There is clearly a long way to go. Lixudebart still needs to progress through clinical trials, so I would not attach too much value to it today.

But I like what the deal says about CSL’s ambitions. The company already has a presence in nephrology through CSL Vifor, and this agreement gives it another potential treatment that could strengthen that part of the portfolio if development is successful.

Another reason to like CSL

Importantly, this partnership is not the main reason I would buy CSL shares.

I am much more interested in the recovery potential across the existing business.

Underlying demand for immunoglobulin therapies remains healthy, and CSL expects that market to continue supporting long-term growth. The company is also working to improve plasma collection productivity and increase the amount of finished product it can produce from each litre of plasma.

Those improvements could help CSL rebuild margins while meeting rising demand.

There are also newer products such as Andembry and Hemgenix that can contribute more over time, giving the company additional growth avenues alongside its established plasma therapies.

For me, the Alentis Therapeutics deal simply adds another potential future winner to that mix.

What about the valuation?

At around $177, I think CSL shares are reasonably priced for the recovery I expect.

Consensus forecasts point to earnings per share of $8.99 in FY27, $9.48 in FY28, and $10.08 in FY29. That means the shares are trading on a PE ratio of less than 20 times forecast FY27 earnings, falling to around 17.5 times the FY29 estimate.

If immunoglobulin demand remains strong, plasma economics improve, and newer products continue gaining traction, I think CSL can deliver on the market’s expectations.

The new partnership adds some longer-term upside, but I would regard any eventual success from lixudebart as a bonus rather than something today’s investment case depends on.

Foolish takeaway

The Alentis Therapeutics agreement gives me another reason to feel positive about CSL, particularly as the company builds out its nephrology pipeline.

But my buy case still comes back to the existing business and its ability to recover.

At around $177, I think investors are getting CSL’s established global healthcare operations at a reasonable valuation, with opportunities such as lixudebart adding something extra for the years ahead.

The post Are CSL shares a buy after its big news? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a few ASX shares that I’ve heavily invested in that now make up a significant portion of my portfolio.

Ultimately, I want to grow my wealth. But, a key part of my investment objectives is growing the flow of dividends hitting my bank account.

With those dividends, I can pay for expenses, whether that’s discretionary spending or having the peace of mind that essential bills are covered by passive income.

With that outlined, let’s look at two businesses that make up around 40% of my portfolio.

MFF Capital Investments Ltd (ASX: MFF)

MFF is predominantly a listed investment company (LIC) that focuses on international shares. It also has a small funds management segment after acquiring Montaka.

MFF likes to target competitively advantaged businesses with above-average prospects for strong economic growth in the long-term.

This investment strategy has led to the ASX share owning stocks like Mastercard, Visa, Alphabet and Amazon.

It’s the portfolio diversification that gives me confidence to invest a significant portion of my portfolio in it. It’s not just a single ASX share.

I also like how it has the flexibility to invest in opportunities big or small, anywhere in the world. This can help deliver good returns by having a wide hunting ground. It has a great track record of delivering returns.

In terms of the dividend, the business has been growing the payout by 1 cent per share every six months for a while. This resulted in the FY26 annual dividend per share rising by 4 cents per share to 21 cents, an increase of 23.5%.

I expect the business will increase its dividend by another 4 cents per share to 25 cents per share, a rise of 19%.

That estimated FY27 payout translates into a grossed-up dividend yield of 6.6%, including franking credits.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Another ASX share that I’ve significantly invested in my portfolio is Soul Patts.

This business is one of the oldest on the ASX, it’s been listed for over 120 years. That longevity is one of the reasons for my confidence in the business, it has already proved it can thrive for many decades.

The company has built its portfolio to include a number of different types of assets including fixed income, private credit, swimming schools, agriculture, telecommunications, resources, energy, electrification, building products, retirement living, financial services and so on.

As I’ve said before, I love investments that can provide exposure to a whole portfolio.

I think it’s really attractive that Soul Patts invests in a wide variety of assets, including a significant portion of the portfolio being unlisted investments.

The investment team at Soul Patts continue to add additional ideas to the portfolio. Recently, fixed income and international investments have become larger focuses.

It regularly adds to its portfolio, which is a useful driver of the net asset value (NAV) of the company, which then helps the share price.

Impressively, it has grown its dividend every year since 1998, which is the sort of consistency I like to invest in. Its latest annual dividend was the FY26 payout of $1.11 per share.

That translates into a grossed-up dividend yield of 3.5%, including franking credits, at the time of writing.

The post These 2 ASX shares make up around 40% of my portfolio appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Visa, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Mff Capital Investments and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.