CSL vs Pro Medicus shares: Which ASX healthcare stock should you buy in October?

When Aussie investors think “healthcare blue-chip”, CSL Ltd (ASX: CSL) probably springs to mind. But rapid-growing tech player Pro Medicus Ltd (ASX: PME) is making waves of its own. Both operate in the fast-evolving healthcare sector, but their businesses, fundamentals and shares shape up very differently. With October upon us, here’s how CSL and Pro Medicus compare for investment appeal right now.

The case for CSL

CSL is a long-established giant in global biotherapy and vaccine development, with more than a century under its belt. Its core business sprawls from treating rare diseases and producing vaccines, through to iron deficiency and kidney health, with operations in over 40 countries. CSL’s key divisions include CSL Behring (plasma therapies), Seqirus (vaccines), and Vifor (nephrology), making it a highly diversified healthcare operator.

Looking at the numbers, CSL boasts a massive $87.3 billion market cap, cementing its blue-chip status on the ASX. Its price/earnings (P/E) ratio sits at 18.12, considerably lower than many growth-focused healthcare peers. A dividend yield of 2.29% and a payout of $4.05 per share will appeal to income-minded investors, though notably, its dividends are currently unfranked. For 2026 to date, the shares have delivered a positive return of 4.8%.

Interestingly, CSL’s reported earnings per share (EPS) in this snapshot is negative (-5.35), which doesn’t mathematically square with a positive P/E ratio. Note: CSL’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.

The case for Pro Medicus

Pro Medicus is a healthcare technology company specialising in medical imaging software used by radiology clinics and hospitals. Its main products — advanced Radiology Information Systems (RIS) and Picture Archiving and Communication Systems (PACS) — help streamline image management and reporting for some of the world’s top medical centres, especially in the US. The company also offers workflow optimisation, network design, and training.

While much younger and nimbler than CSL, Pro Medicus has grown into a $16.94 billion company as of the latest data snapshot. Its valuation is rich: a P/E ratio of 63.49 reflects the high growth investors expect from healthcare tech disruptors. For dividend hunters, Pro Medicus pays out a much smaller (but fully franked) yield of 0.43%, with a dividend of $0.69 per share.

Notably, Pro Medicus has posted positive EPS (2.536), but its shares have struggled this year, dropping -26.8% year to date. That underperformance stands in sharp contrast to CSL’s modest gains.

Valuation comparison

Here’s how CSL and Pro Medicus compare on fundamentals, using the latest available numbers:

Metric	CSL	Pro Medicus
Market Cap	$87.30 billion	$16.94 billion
P/E Ratio	18.12	63.49
Dividend Yield	2.29% (Unfranked)	0.43% (100% Franked)
Dividend per Share	$4.05	$0.69
Year To Date Return	4.8%	-26.8%
Earnings per Share	-5.350	2.536

Note: CSL’s positive P/E and negative EPS figures may seem inconsistent; this could be because underlying or forward earnings have been used for the P/E.

Recent share price performance

Comparing recent share price action up to 28 September, here’s how their shares moved heading into October:

• As of 28 Sep 2026, CSL shares closed at $181.91, gaining 2.8% on the day and advancing 4.8% year to date.
• As of 28 Sep 2026, Pro Medicus shares ended at $162.15, rising 0.7% for the day but down sharply, by -26.8% year to date.

So while CSL has trended higher in 2026 so far, Pro Medicus has seen a notable pullback despite its earlier strong run.

Which is the better buy?

If I had to choose just one ASX healthcare share for October, my pick would be CSL. Here’s why: Despite a challenging couple of years, CSL offers the steadiness of a global leader with a long track record, a mid-range (for healthcare) P/E ratio, and a solid dividend yield — all with demonstrated year-to-date gains. Its scale, diversification, and staying power make it hard to look past, even allowing for some confusion around current reported earnings.

Pro Medicus is an exciting disruptor with unique tech and exposure to US healthcare, but its lofty valuation (P/E above 60) and steep share price slide this year make it tougher for me to justify at current prices. While Pro Medicus’ 100% franking is a perk, its yield is modest and its short-term momentum is firmly negative.

For a mix of quality, income and market resilience in the current environment, I think CSL stands out as the better buy for October.

The post CSL vs Pro Medicus: Which ASX healthcare share is better? 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 positions in and has recommended CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL and Pro Medicus. 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.

Holding an ASX share until 2040 is a big commitment.

For me, that means looking for businesses with strong competitive positions, long growth runways, and products or services that should still be relevant many years from now.

These are five leading ASX shares I would be comfortable buying with that timeframe in mind.

Pro Medicus Ltd (ASX: PME)

Pro Medicus would be one of my first choices. Its Visage imaging software is used by major healthcare organisations to manage and view increasingly large volumes of medical imaging data.

What I like is the combination of a highly scalable software model and exposure to a healthcare system that continues to generate more imaging.

The technology company has also shown it can win large customers in the United States, giving it plenty of room to keep expanding internationally.

By 2040, I think medical imaging will be even more digital, data-heavy, and AI-assisted than it is today. Pro Medicus looks well placed to grow alongside that shift.

Commonwealth Bank of Australia (ASX: CBA)

CBA brings a very different type of strength.

It is already Australia’s largest bank, with leading positions across home lending, deposits, and digital banking.

That means I would not expect explosive growth over the next 14 years. The attraction here is the quality and resilience of the franchise.

Banking should remain a core part of the Australian economy for decades, and I think CBA’s scale, customer base, and technology investment leave it well positioned to keep earning attractive returns.

For me, that makes it the major bank I would be most comfortable owning through multiple economic cycles.

Cochlear Ltd (ASX: COH)

Cochlear is another ASX share I think suits a very long investment horizon.

The company is a global leader in implantable hearing solutions, helping people with severe hearing loss regain access to sound.

Ageing populations and greater awareness of hearing loss could continue to increase demand over time, while ongoing innovation should broaden the range of patients who can benefit from treatment.

I also like that Cochlear operates in a specialised medical field where clinical expertise, technology, and trusted relationships with healthcare professionals are difficult to replicate.

That gives me confidence in its ability to remain relevant well beyond the next few years.

Xero Ltd (ASX: XRO)

Xero would provide the portfolio with long-term technology exposure.

Its accounting platform is deeply integrated into the day-to-day operations of small businesses, accountants, and bookkeepers across the world.

However, with a total addressable market estimated to be around 100 million businesses globally, Xero is still only scratching the surface of its market opportunity with its 4.9 million customers.

If the company can keep growing its market share, I think it could be a much larger business by 2040.

NextDC Ltd (ASX: NXT)

This ASX share rounds out my five.

NextDC develops and operates data centres, giving investors direct exposure to the enormous growth in digital infrastructure.

Cloud computing was already driving demand before the current AI boom. Artificial intelligence is adding another layer because training and running increasingly powerful models requires huge amounts of computing capacity.

That creates demand for secure facilities with access to power, connectivity, and large amounts of technical infrastructure.

NextDC still has plenty to execute as it expands its capacity, but I think the structural demand behind the business could run for many years.

Foolish takeaway

A lot can change between now and 2040, so I would not expect every year to be smooth for any of these businesses.

What gives me confidence is that each one is exposed to a long-term need I can still see as important well into the future, whether that is healthcare, banking, small-business software, or digital infrastructure.

That is the sort of foundation I would want before committing to holding an ASX share for the next 14 years.

The post 5 leading ASX shares I’d buy and hold until 2040 appeared first on The Motley Fool Australia.

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

This period of time seems to have heightened uncertainty, with plenty of disruption with energy prices, wider inflation, technology changes, and bond yields. I’m also seeing elevated dividend yields on offer from high-quality ASX dividend shares that pay passive income.

I don’t expect interest rates to stay this high forever, so I believe opportunistic investors can buy stocks at a discount, with a high dividend yield.

With that in mind, I’m going to highlight two ideas that look like unmissable buys right now for investors who want passive income.

Centuria Industrial REIT (ASX: CIP)

I believe the real estate investment trust (REIT) sector is significantly undervalued, considering the consistent rental income it generates and the importance (and scarcity) of the land it owns.

Industrial properties are in high demand in metropolitan locations because of both a shortage of facilities and tailwinds from multiple demand drivers. For example, e-commerce adoption, data centres, and refrigerated space (for food and medicine) are all increasing the value of industrial real estate over time.

During FY26, the business reported 5.2% like-for-like net operating income (NOI) growth. That was partly boosted by 30% positive re-leasing spreads, meaning that new rental contracts are generating 30% more rental income than the old contract.

According to the ASX dividend share, its real estate portfolio is still on average 17% ‘under-rented’, so its rent could continue to grow strongly over the next several years as leases come up for renewal.

It has guided that it will grow its distribution by 3% in FY27 to 17.3 cents, which now represents a distribution yield of 6.1%, which is an impressive starting point.

In my view, it’s very cheap. It reported net tangible assets (NTA) of $4.01 at 30 June 2026. It’s currently trading at a discount of 30% to that figure.

MFF Capital Investments Ltd (ASX: MFF)

The other ASX dividend share I want to highlight is the listed investment company (LIC) MFF.

I think it’s great to be able to invest in one name and get exposure to a diversified portfolio. MFF owns a portfolio and aims to invest in competitively advantaged global businesses with strong outlooks.

Some of the businesses currently in the portfolio include Mastercard, Alphabet (Google), Visa, Bank of America, Amazon, and Microsoft.

By investing in these great companies, MFF is unlocking investment returns which it then uses some of to pay a growing dividend. The retained profits can then be used for further compounding.

I think MFF will grow its FY27 dividend by 19% to 25 cents per share. That translates into a potential forward grossed-up dividend yield of 6.6%, including franking credits, at the time of writing. It has hiked its regular annual dividend every year since 2018, and the payout continues to grow.

The post 2 great ASX dividend share buys for passive income in October appeared first on The Motley Fool Australia.

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Bank of America is an advertising partner of Motley Fool Money. Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Microsoft, and Visa. The Motley Fool Australia has positions in and has recommended Mff Capital Investments. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Microsoft, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.