PLS vs BHP shares: Which ASX 200 mining stock is the better buy?

When you think Australian mining, two names jump to mind: PLS Group Ltd (ASX: PLS) and BHP Group Ltd (ASX: BHP). Both find themselves among the ASX 200’s go-to stocks for anyone keen on Aussie resources exposure, whether it’s booming lithium demand or diversified mining muscle. But with different focuses—PLS charging hard on the lithium front and BHP spanning iron ore, copper, and more—the comparison isn’t apples for apples. If you’re torn between PLS and BHP shares, let’s break down the case for each and see which one might be the better buy right now.

The case for PLS

PLS Group, previously known as Pilbara Minerals, has carved out a spot at the centre of the global lithium story. Its flagship project, the Pilgangoora Lithium-Tantalum Project in Western Australia, is among the world’s largest hard-rock lithium-tantalum deposits. The company also expanded overseas, adding the Colina lithium project in Brazil via an acquisition in 2025. PLS moved from exploration to production remarkably fast and keeps building its international sales channels as electric vehicle demand surges.

From the fundamentals, a few points stand out:

• Market cap: $11.77 billion—a sizeable player in its space but dwarfed by BHP’s heft.
• P/E ratio: 23.92, suggesting investors are paying up for the growth and excitement around lithium, even as the broader market cools on battery metals this year.
• Dividend yield: 1.3% (fully franked), offering returns, but modest compared to mature resource companies.

EPS sits at $0.161, with a dividend per share of $0.05, and 100% franking for Australian investors. Year to date, its shares are down 7.4%, showing how exposed PLS remains to commodity cycles and market sentiment.

The case for BHP

BHP Group is mining royalty—one of the world’s largest diversified mining giants with a vast portfolio that includes iron ore, copper, coal, and nickel. Since unifying its corporate structure in 2022, BHP’s focus has stayed on stable cash flows from its gigantic operations spanning Australia and overseas. With one of the deepest track records on the ASX, BHP is often viewed as a defensive core holding for income and scale.

Notable fundamentals include:

• Market cap: $306.37 billion—massively larger than PLS, reflecting global reach, asset variety, and institutional confidence.
• P/E ratio: 22.09, actually a touch lower than PLS’s (despite the size difference), highlighting steady profits and mature business appeal.
• Dividend yield: 3.98% (fully franked), making BHP an income hunter’s favourite among resource stocks.

EPS sits at $1.932, with dividends per share at $2.42, a hefty payout. Year to date, BHP shares have soared 39.0%, outstripping many on the ASX and dwarfing PLS’s recent performance.

Valuation comparison

Comparing key valuation metrics side by side:

	PLS	BHP
Market Cap	$11.77 billion	$306.37 billion
P/E Ratio	23.92	22.09
Dividend Yield	1.30% (100% franked)	3.98% (100% franked)
EPS	$0.161	$1.932
Dividend per share	$0.05	$2.42

Both companies’ earnings are fully franked—a plus for Australian dividend seekers. Interestingly, PLS’s P/E multiple is a touch above BHP’s, which might look surprising given BHP’s mature, stable cash flows. However, that premium suggests the market is betting on stronger growth for PLS versus more “steady as she goes” from BHP.

Recent share price momentum

Comparing recent share price performance up to 1 October 2026:

• PLS Group Ltd closed at $3.65, having dropped 5.4% on the day. Year to date, PLS is down 7.4%.
• BHP Group Ltd closed at $60.26, declining 0.9% on the day, but its year to date gain is an impressive 39.0%.

Both stocks have seen volatility, but BHP’s share price has gained serious momentum in 2026, while PLS has had a tougher year.

Which is the better buy?

If I had to pick one ASX 200 mining stock right now, my vote would go to BHP. The numbers just stack up better at the moment—BHP offers a much higher, fully franked dividend yield (3.98% versus 1.3%), which is a big plus with interest rates still high and investors returning to income stocks. BHP’s year to date share price run (+39.0%) also tells me the market is rewarding its scale and steady cash generation, especially compared to PLS Group’s negative year to date return.

PLS is exciting, no doubt, and will ride every updraft in lithium demand—the P/E premium reflects that optimism. But for income, stability, and sheer momentum, I think BHP is the clearer buy in this head-to-head. If I were seeking higher risk and growth, I might take a deeper look at PLS. But today, BHP’s fundamentals, dividend payout, and recent performance make it my pick of these two ASX mining heavyweights.

The post PLS vs BHP: Which ASX 200 mining stock looks better today? 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 BHP Group. 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.

ASX bank stocks have been in the spotlight over the past month as rising inflation, higher interest rates, and a cooling property market raise concerns about how the banks could perform over the long run.

The experts are pretty reserved about the outlook for the big four major banks, and most mid-tier ones too. Most are expected to fall lower over the next 12 months as macroeconomic pressures increase.

But there is one ASX bank stock with a very rosy outlook ahead.

Judo Capital Holdings Ltd (ASX: JDO) works differently to its peers. Unlike many other banks in the sector, Judo Bank was built to provide financial services and lending to small and medium enterprises (SMEs). These SMEs have annual turnovers of up to $100 million.

The bank was founded in 2016 and received its banking license in 2019. That means it’s relatively new in comparison to the majors. It was listed on the ASX in 2021.

The bank provides business lending starting at $250,000 and touts itself as providing more flexibility than major banks. It also offers personal term deposit products and home loans.

What’s the latest out of Judo Bank shares?

At the time of writing, the ASX bank stock is trading at 90 cents a piece. That’s around 50% lower for the year to date and 49% lower than this time last year.

The shares suffered a crash of around 40% within one day of trading in late June. This happened after the bank downgraded its profit guidance for FY26. The move left investors questioning the bank’s near-term outlook.

But the final result in August seemed to be a little better than expected. Judo Bank announced strong gains across the board. NPAT increased 29% to $111.1 million, and profit before tax increased 34% to $168.1 million. This was at the top end of Judo’s revised guidance range.

Investors rushed to the stock, and the share spiked by around 16% following the announcement. But then a slump in overall sentiment for bank shares and profit-taking investors has seen those gains reversed over the past seven weeks.

What do brokers tip next for the ASX bank stock?

It looks like the sell-off was way overdone, and the shares are now trading well below fair value.

Brokers are very bullish on the outlook for Judo Bank shares, with the majority holding a strong buy rating, according to Market Index data. The average $1.38 target price currently implies around a 52% potential upside over the next 12 months, at the time of writing.

TradingView data shows something similar. Again, the majority (12 out of 14) have a buy/strong buy rating. The $1.485 average target price implies an upside of around 64%, at the time of writing.

But some think the shares could jump another 86% to $1.68 each over the next 12 months.

Morgans has a buy rating and $1.42 target price on the bank shares.

The broker said Judo’s results were towards the top end of the revised guidance range, and FY27 guidance was reaffirmed, offering strong earnings growth. But it thinks that by the end of this decade, Judo Bank shares could be worth close to $2 per share. 

The bank is higher risk and more cyclically exposed than the major banks, but investors are compensated by higher potential returns at current prices. 

Elsewhere, the team at Macquarie said the question is whether the bank can strike the right balance between margins, growth, and credit quality to achieve returns at scale. Macquarie has a price target of $1.65 on Judo shares.

So, if I invest $5,000 into Judo Bank shares today, what could it be worth by this time next year?

Assuming Judo Bank shares reach the average forecast target price of $1.38 to $1.48 within the next 12 months, a $5,000 investment today could be worth $7,600 to $8,200 by October 2027.

And if the more bullish experts are correct. The same $5,000 investment could climb even higher, up to $9,300, by this time next year.

The post By October 2027, $5,000 invested in this ASX bank stock could turn into… appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Droneshield vs Zip shares: Which ASX tech stock is better for growth investors?

Trying to choose between Droneshield Ltd (ASX: DRO) and Zip Co Ltd (ASX: ZIP) for your next growth-focused investment? Both are prominent names in Australia’s tech scene, but they offer very different business models and risk profiles. Droneshield is making waves with its counter-drone technology, while Zip is a key player in digital buy-now, pay-later finance. Here’s how they stack up for those seeking the next big thing.

The case for Droneshield

Droneshield is an Australian innovator focused on artificial-intelligence-powered solutions that detect and counter drones—a growing global threat for governments, defence forces, airports, and commercial venues. Its product suite features DroneGun Tactical, RfPatrol, and DroneSentry, among others. These technologies are already in use protecting infrastructure and assets in Australia, the US, and the UK.

Looking at Droneshield’s fundamentals:

• It has a market cap of $1.57 billion, promising for a company outside the mainstream ASX 100.
• The P/E ratio is reported at an eye-watering 433.75, and earnings per share are negative at -0.033, indicating the business is still burning through cash as it scales up. Note: Droneshield’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.
• Year-to-date, its share price is down 47.6% — a stark reminder of the volatility that comes with early-stage growth stocks.

Droneshield pays no dividend, opting instead to reinvest in its technology and growth pipeline.

The case for Zip

Zip is an established fintech best known for its Zip Pay and Zip Money platforms. The company offers interest-free buy-now, pay-later services across 12 countries, including major operations in Australia, New Zealand, and the US. Zip Co is a pioneer in delivering digital tools that help consumers split and manage payments, challenging traditional credit providers and tapping into a rapidly shifting payments landscape.

A glance at Zip Co’s metrics:

• It boasts a larger market cap at $2.53 billion, putting it among the more notable fintechs on the ASX.
• The P/E ratio sits at 22.30—a far more conventional number compared to Droneshield, with positive earnings per share of 0.091. This suggests Zip has moved past the loss-making start-up phase and into sustainable profitability.
• Like Droneshield, Zip doesn’t pay a dividend, choosing growth over income for now. Its YTD return is -38.6%, still deeply negative but slightly better than Droneshield’s.

Valuation comparison

Metric	Droneshield	Zip
Market Cap	$1.57 billion	$2.53 billion
P/E Ratio	433.75	22.30
Earnings per Share (EPS)	-0.033	0.091
Dividend Yield	0.00%	0.00%
YTD Return	-47.6%	-38.6%

Note: Droneshield’s negative EPS and its reported P/E ratio appear inconsistent, likely due to different calculation bases (forward/underlying earnings). For both, dividend yields sit at zero—a standard feature of high-growth tech names investing for the future.

Recent share price momentum

Comparing recent share price perfomance up to 30 September 2026:

• Droneshield closed at $1.70, up 4.95% on the day. Its price action across September has been volatile, but the late-month rally could hint at fresh investor interest or news flow.
• Zip finished at $2.03 on the same date, up just 0.5% for the session. Zip’s September showed a mix of sharp down days and small gains, reflecting ongoing uncertainty but also a willingness for traders to buy the dips.
• Both remain well below their January levels, with Droneshield lagging more sharply YTD.

Which is the better buy?

For growth investors, I’d lean toward Zip right now, even with its own sizeable share price slump. Zip has reached profitability, giving it a lower and more grounded P/E ratio, and offers greater operational scale as seen in its higher market cap and international reach. While Droneshield is an exciting play in the defence tech space, it remains loss-making and considerably more volatile—its negative EPS and extremely high P/E imply a lot of hope is baked in, but earnings haven’t caught up yet.

If you’re comfortable with risk and want “moonshot” potential, Droneshield could be your ticket—a single contract or regulatory change could turbocharge its prospects. But for most growth-focused portfolios, I think Zip offers the better balance of proven scalability and upside at today’s prices. Of course, neither is for the faint-hearted, and sharp reversals are always possible.

The post Droneshield vs Zip Co: Which tech share is the better ASX growth pick? appeared first on The Motley Fool Australia.

More reading

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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.