Commonwealth Bank of Australia vs BHP Group Ltd shares

If you’re keen on ASX blue chips, chances are you’ve looked at Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP). They’re both among the nation’s most valuable companies, but come from wildly different corners of the economy: one’s a financial powerhouse, the other a global mining giant. So which offers the better proposition for Aussie investors as we head into October? Here’s what I’ve found digging into their latest numbers.

The case for Commonwealth Bank of Australia

As one of Australia’s “big four” banks, Commonwealth Bank of Australia is about as iconic as it gets on the ASX. With roots stretching across Australia and into New Zealand, the UK, the US, and Asia, CommBank offers a comprehensive range of financial services—from everyday banking to wealth management, insurance, and broking. It holds a top spot for market capitalisation (in the banking sector) and customer base locally.

From the latest data, I noticed a few standout fundamentals:

• Market cap: $253.56 billion—immense, even among banking peers.
• P/E ratio: 23.14—suggesting investors are willing to pay a premium compared to many other blue chips, though it’s worth remembering banks’ valuations often differ from sectors like resources.
• Dividend yield: 3.35%, with dividends 100% franked and a robust record of consistent, fully-franked payouts over decades. The most recent dividend was $2.70 per share (final), with an interim of $2.35 earlier this year.

CBA’s brand recognition and broad financial reach are major moats, and its dividend reliability makes it a favourite among income-seeking investors.

The case for BHP

BHP is a global heavyweight in resources, with roots going back centuries. Once known as BHP Billiton, it’s now streamlined to a single ASX listing. The company digs up and sells a range of core commodities: iron ore, copper, coal, and more. As commodity prices shift, so too does BHP’s share price—so you get a different risk profile with this stock compared to the big banks.

A few key data points jumped out to me:

• Market cap: $304.03 billion—BHP actually edges past CBA here, making it the largest ASX-listed giant in this comparison.
• P/E ratio: 22.11—slightly below CBA’s, though I’d note sector comparison between mining and banking is far from apples-to-apples.
• Dividend yield: 3.98%, also 100% franked. BHP’s dividends sometimes swing with profit cycles, but its recent payouts remain substantial: its last final dividend was $1.38 per share, with a $1.04 interim earlier this year.
• Year-to-date (YTD) return is a massive 38.8%, driven up by the latest commodity boom and strong operational delivery.

BHP’s company description highlights its sensitivity to commodity prices, a double-edged sword—potential for big gains in strong years, but risks if global demand wobbles.

Valuation comparison

Here’s how the numbers stack up side by side:

	Commonwealth Bank of Australia	BHP
Market Cap	$253.56 billion	$304.03 billion
P/E Ratio	23.14	22.11
Dividend Yield	3.35%	3.98%
Dividend Franking	100%	100%
Earnings per Share	6.517	1.932
Dividend per Share	5.05	2.42

Note: Both companies report similar P/E ratios, though these aren’t strictly comparable with each other due to the different sectors they operate in. Yield-wise, BHP edges out CBA on dividend, though this can vary considerably year to year for miners.

Recent share price performance

Comparing recent share price activity up to 25 September 2026:

• Commonwealth Bank of Australia closed at $150.83 on 25 Sep 2026, with a year-to-date return of -2.9%. Over the last week in the data, CBA’s price wobbled, experiencing several days of negative moves after a long period above $150.
• BHP Group closed at $60.72 on 25 Sep 2026, with a year-to-date return of 38.8%. Its share price has surged over the year, though like many resource stocks, recent daily moves bounced around—up one day, down another, with a slight negative in the last session displayed.

Which is the better buy?

If I’m weighing up between these two blue chips for October, my pick would be BHP Group. Here’s why: the current data shows BHP outpacing CBA on this year’s return by a massive margin, and it’s also offering a higher 3.98% fully-franked yield compared to CBA’s 3.35%. Both companies show strong dividend records and full franking, but BHP’s recent price momentum and sector tailwinds, driven by strong commodity prices, tip the balance for me right now.

Of course, with BHP, you are exposed to the swings of the global commodity cycle, so you have to be comfortable with a bumpier ride than you’d get from a major Australian bank like CBA. CommBank remains a reliable income stock and will always deserve a place in any ASX blue chip conversation, but at this snapshot in time—with sector differences acknowledged—I think the stronger momentum and yield favour BHP.

The post Commonwealth Bank vs BHP: Which ASX blue chip is the better buy in October? appeared first on The Motley Fool Australia.

More reading

• Are ASX 200 bank stocks a buy in October?
• 7 ASX mining shares with 11% to 158% upside ahead: experts
• 5 leading ASX shares I’d buy and hold until 2040
• Commonwealth Bank vs ANZ: Which is better for passive income?
• Sell alert! Expert calls time on Corporate Travel and CBA 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 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.

PLS Group Ltd (ASX: PLS) shares are a popular option for investors looking for exposure to the lithium industry.

However, if you are looking for outsized returns, Bell Potter thinks the ASX lithium stock in this article could be the one to buy.

Which ASX lithium stock?

The stock that Bell Potter is tipping to rocket is lithium miner Liontown Ltd (ASX: LTR).

The broker highlights that Liontown has announced plans to expand Kathleen Valley Spodumene Concentrate production capacity. It commented:

LTR has announced a positive Final Investment Decision to expand Kathleen Valley Spodumene Concentrate (5.4% Li2O) production capacity to around 780ktpa from FY30 (currently ~500ktpa). The expansion capital cost is estimated at $389m, including the $60-70m early works previously communicated in FY27 guidance. The expansion capital will be spent over FY27-29 with a step-change in production from FY30. 

At normalised expanded production rates, targeted unit costs are $840-920/t (US$610-670/t) SC and annual sustaining capital $90-100m. LTR also reiterated FY27 production and unit cost guidance and Kathleen Valley remains on track to reach 2.8Mtpa mining and processing by mid-2027. FY27 capex guidance is now $435-495m (previously $320-370m), which incorporates the expansion capital.

While this expansion comes at a cost, Bell Potter appears pleased with the plans. It said:

LTR’s expansion was within our capital cost estimate and is extremely efficient compared with the expansions of peer lithium producers. Wesfarmers (ASX: WES, not rated) recently announced Mt Holland expansion FID which adds 380ktpa SC capacity for gross capex of $1.3-1.4b. PLS Group’s (ASX: PLS, Hold TP$5.20/sh) P2000 expansion will also likely be highly capital intensive. LTR expect to fund the expansion from cash ($561m at 30 June 2026) and cash flows from operations. 

We have incorporated LTR’s expansion metrics, resulting in EPS changes: FY27 -8%; FY28 -18%; and FY29 -17%. The key adjustment to our model being a step-change in production from FY30 compared with our previous assumption of more incremental expansions over FY28-29.

Big potential returns

According to the note, Bell Potter has retained its buy rating on the ASX lithium stock with a trimmed price target of $1.70 (from $1.90).

Based on its current share price of 93 cents, this implies potential upside of more than 80% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

LTR’s EV is lagging the recent recovery in lithium markets and expected tight supplydemand fundamentals. When LTR was trading at its current EV in October 2025, SC6 prices were US$820/t and net debt was $274m. Since then, the Kathleen Valley underground ramp-up has been further de-risked and spot SC6 prices are above US$1,700/t. While we expect lithium markets will be volatile, market fundamentals remain strong. Over FY27, LTR will continue to ramp up and de-risk Kathleen Valley, a highly strategic asset in terms of scale, long project life and location in a tier-one mining jurisdiction

The post Forget PLS, this ASX lithium stock could rise 80% appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Liontown Resources approves $389m Kathleen Valley lithium expansion
• 2 ASX shares highly recommended to buy: Experts
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Motley Fool contributor James Mickleboro 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 Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

October is here, which could make now a good time to look at where fresh money could go next.

ASX exchange traded funds (ETFs) can make that decision easier by providing exposure to a collection of companies in one trade.

Here are five that could be worth considering this month.

Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)

The Betashares S&P/ASX Australian Technology ETF could be a good option for investors who want exposure to Australia’s technology sector.

This fund invests across locally listed businesses involved in software, online marketplaces, payments, data, and other digital services.

Australia does not have a technology sector on the same scale as the United States, but it has still produced some impressive global businesses like WiseTech Global Ltd (ASX: WTC).

That makes this fund a simple way to back local innovation without having to decide which individual technology company will perform best.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF remains one of the simplest ways for Australian investors to access the US market.

It owns 500 large American companies spanning technology, healthcare, financial services, industrials, consumer goods, and more. This includes Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Visa (NYSE: V).

What stands out is how many of these businesses operate well beyond the United States.

Their products and services are used around the world, giving investors exposure to global earnings through a single fund.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The Betashares Global Quality Leaders ETF takes a more selective approach.

Rather than simply owning the largest companies, it focuses on businesses with characteristics such as strong profitability, healthy balance sheets, and relatively stable earnings.

That can be a very good thing. When economic conditions become more difficult, financially strong companies are often better placed to keep investing, protect margins, and take advantage of opportunities.

For investors who want international exposure with a quality tilt, this fund could be a strong option.

Betashares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF to consider is the Betashares Global Cybersecurity ETF. 

It gives investors exposure to companies protecting the digital economy. That includes businesses involved in network security, cloud protection, identity management, endpoint security, and threat detection.

Cybersecurity spending is becoming harder for companies to avoid. As businesses use more cloud software, artificial intelligence, online payments, and connected systems, the cost of a security failure can become enormous.

That could support demand for the companies held by this fund for many years.

Betashares Australian Quality ETF (ASX: AQLT)

Finally, the Betashares Australian Quality ETF could suit investors wanting local shares without simply following the biggest companies in the market.

The fund looks for Australian shares with stronger profitability, healthier balance sheets, and more stable earnings.

This means its portfolio is shaped by financial quality rather than company size alone.

That could be attractive for investors who want Australian exposure but would prefer something different from a traditional index fund dominated by banks and miners.

The post 5 excellent ASX ETFs to buy in October appeared first on The Motley Fool Australia.

More reading

• VGS vs IVV: Which ETF would I buy with $10,000?
• How much must I invest in IVV ETF shares to earn a $1,000 passive income in 2027?
• Own US ETFs like IVV or NDQ? Here’s why your dividends are so low
• Invested in ASX IVV or other iShares ETFs? Here’s your next dividend
• 10 top ASX ETFs to watch in 2027

Motley Fool contributor James Mickleboro has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Global Cybersecurity ETF, Nvidia, Visa, WiseTech Global, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Apple, Nvidia, Visa, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.