Commonwealth Bank of Australia vs Westpac shares: Which bank stock is the better buy?

Australia’s major banks are among the most closely watched shares on the ASX. Whether you’re keen on steady dividends, reliable market leaders, or just want your investments to track with the backbone of the Aussie economy, there’s a good chance you’re weighing up Commonwealth Bank of Australia (ASX: CBA) vs Westpac Banking Corp (ASX: WBC) shares. Both are “big four” heavyweights, but subtle differences could matter if you want the better value, yield, or momentum in your portfolio. Let’s break it down.

The case for Commonwealth Bank of Australia

Commonwealth Bank of Australia, or CBA, is the country’s largest bank and one of Australia’s most iconic brands. It offers a wide range of financial services spanning retail, business, and institutional banking, as well as funds management, super, insurance and broking. Operating across Australia, New Zealand, Asia, the UK, and the US, CBA’s reach is truly global.

A few key numbers jump out. CBA boasts a massive market cap of $254.92 billion and a P/E ratio of 23.48, handsomely ahead of its peers on size. The dividend yield sits at 3.30%, fully franked, which is a big draw for income-focused investors. Its earnings per share are $6.517, and shareholders received a dividend of $5.05 per share in the last year. Notably, the franking is again 100%, ticking the box for those targeting tax-effective income. The bank has an unbroken track record of paying fully franked dividends stretching back decades.

The case for Westpac

Westpac Banking Corp, trading as Westpac, is Australia’s oldest bank and a mainstay of the sector. It’s home to major brands like St.George, Bank of Melbourne, BankSA and BT, serving millions of customers via a wide array of retail, business and institutional banking, and wealth management channels. According to its current company profile, Westpac operates across six divisions, demonstrating its broad exposure across banking and financial services.

Westpac’s fundamentals are competitive for value seekers. The market cap is $119.40 billion, quite a bit smaller than CBA’s, but still firmly in blue chip territory. Critically, Westpac’s P/E ratio is a more modest 17.22 — suggesting the market prices its future earnings more cautiously. Where it currently shines is dividend yield: at 4.41%, fully franked, Westpac tops CBA on payout percentage. The per-share dividend over the past year was $1.54, with 100% franking. Earnings per share currently stand at $2.029.

Valuation comparison

Here’s how the core numbers stack up:

Metric	Commonwealth Bank	Westpac
Market Cap	$254.92bn	$119.40bn
P/E Ratio	23.48	17.22
Dividend Yield	3.30%	4.41%
Earnings per Share (EPS)	$6.517	$2.029
Dividend per Share	$5.05	$1.54
Franking	100%	100%
Year-to-Date Return	-1.6%	-7.5%

Both have 100% franked dividends.

CBA is substantially larger, but Westpac currently offers a noticeably higher dividend yield and a significantly lower P/E ratio — which might appeal to value investors. Westpac’s lower earnings per share comes with a much lower price point too, reflecting its smaller market cap.

Recent share price performance

Comparing data up until 21 September 2026:

• Commonwealth Bank closed at $152.99 as of 21 Sep 2026, up 0.37% on the day. Year to date, CBA shares have returned -1.6%.
• Westpac closed at $34.93 on 21 Sep 2026, rising 0.52% that session. However, Westpac’s year-to-date return stands at -7.5%.

Both banks have enjoyed some positive days in September, but CBA has held up far better in 2026 so far. Westpac’s share price has underperformed, lagging by nearly 6 percentage points year-to-date.

Which is the better buy?

Both Commonwealth Bank of Australia and Westpac offer investors defensive income, blue chip security, and fully franked dividends. But if I’m picking between the two right now, I’d lean toward CBA.

Here’s why: While Westpac’s yield is higher and its P/E ratio lower (a value tick), CBA has delivered a markedly better share price performance in 2026 — despite its higher valuation. CBA’s dominant position, strong earnings per share, and consistent dividend growth over decades (with a much higher dollar payout per share) signal long-term resilience. In contrast, Westpac’s lagging share price and much smaller EPS leave me cautious.

If I wanted maximum dividend yield right this minute, Westpac would tempt me, but CBA’s quality, stability, and track record give me more confidence for the years ahead. On balance, my pick would be Commonwealth Bank of Australia.

The post Commonwealth Bank vs Westpac: Which ASX bank stock is the better buy for resilient passive income? 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.

Goodman Group (ASX: GMG) shares have had a much tougher run recently.

The property giant is trading around $26.35 on Friday, well below the levels investors were willing to pay earlier in the year.

For investors considering the stock today, the obvious question is whether this weakness has created an opportunity.

Could Goodman shares climb back above $30 in 2027? I think they can.

What would it take to reach $30?

A move from $26.35 to $30 would represent a gain of around 14%.

That does not look particularly demanding to me if Goodman can deliver the earnings growth the market is expecting.

Earnings per share (EPS) came in at 129.9 cents in FY26. Consensus forecasts point to EPS increasing to 142 cents in FY27 and then 151 cents in FY28.

That would represent earnings growth of around 9% in FY27, followed by another increase of approximately 6% in FY28.

For me, that earnings trajectory provides a reasonable foundation for the share price to recover.

What would Goodman be worth at $30?

At today’s price of around $26.35, Goodman is trading on a PE ratio of approximately 18.6 times forecast FY27 earnings.

Using the FY28 consensus forecast, that multiple falls to around 17.5 times.

If Goodman shares reached $30, the stock would trade on approximately 21 times FY27 forecast earnings or just under 20 times FY28 earnings.

I do not think either valuation looks unreasonable if the company’s data centre expansion is a success.

Of course, there are still uncertainties.

Goodman’s valuation can be sensitive to investor expectations around interest rates and property markets, while earnings forecasts could change if the AI boom doesn’t result in increased demand for data centres. A weaker earnings outlook could make $30 harder to justify.

But at the current share price, I think investors are being offered a more attractive starting point than they were near the 52-week high.

Would I buy Goodman shares?

I would. If earnings per share reaches 142 cents in FY27 and 151 cents in FY28, Goodman should continue growing into its valuation over the next couple of years.

That gives investors two potential drivers of returns: higher earnings and some recovery in the multiple investors are prepared to pay for those earnings.

I think that combination makes the shares attractive at current levels.

Foolish takeaway

For me, $30 looks like a realistic target for Goodman shares in 2027.

It would require a gain of around 14% from today’s price, but the forecast earnings growth suggests the business could do some of the heavy lifting rather than relying entirely on a higher valuation.

Overall, I would be comfortable buying Goodman shares around $26.35 and giving the company time to work its way back above $30.

The post Will Goodman shares reach $30 in 2027? appeared first on The Motley Fool Australia.

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

National Australia Bank Ltd (ASX: NAB) shares could be a pleasing passive income option, depending on what dividends the ASX bank share ends up paying.

Banks like NAB have can deliver a solid dividend yield thanks to its fairly low price/earnings (P/E) ratio and generous dividend payout ratio.

NAB’s profit is fairly consistent due to the nature of banking. Borrowers repay their loans every month, providing NAB with resilient cash flow.

Let’s take a look at what experts expect for NAB’s dividend in the coming years.

FY26

We’re close to the end of the 2026 financial year for NAB, which ends in September 2026. The last we heard from the ASX bank share was the three months to 30 June 2026.

Its FY26 third quarter saw the bank generate statutory net profit after tax (NPAT) of $1.81 billion, an increase of 32% compared to the quarterly average of the FY26 first half.

Revenue grew by 2% compared to the first-half FY26 quarterly average, and 5% year-over-year. Cash earnings of $1.83 billion were up 4% year-over-year, and 2% compared to the FY26 first-half quarterly average.

It’s not a lot of growth, but it’s growth nonetheless at a difficult time.

Its credit impairment charges came to $299 million. Within that, its collective provision charges were $119 million, driven by business lending volume growth and a deterioration in performing book asset quality. It’s something to keep an eye on amid higher interest rates and potential stress related to the Middle East conflict.

According to the projection on CMC Invest, NAB could pay an annual dividend per NAB share of $1.70, which would be the same as FY25.

FY27

The 2027 financial year could see an improvement in the bank’s financials, according to the earnings and dividend projections. Forecasts are not guaranteed to happen of course, but I think any growth during the current period would be impressive.

According to the projection on CMC Invest, the ASX bank share is forecast to slightly increase its annual payout to $1.705 per NAB share.

FY28

The final year of this series of projections could be the best of all for shareholders of National Australia Bank.

The forecast on CMC Invest suggests that the business could accelerate the growth of its dividend, taking the annual payout to $1.73 per NAB share.

At that potential level, the ASX bank share could deliver a grossed-up dividend yield of 6.4%, including franking credits, at the time of writing.

The post Here’s the dividend forecast out to 2028 for NAB shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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.