Codan vs Megaport shares: two ASX techs full of surprises

Everyday investors are always on the lookout for Aussie tech names with serious growth potential, and right now, Codan Ltd (ASX: CDA) and Megaport Ltd (ASX: MP1) are two of the most talked-about options. Both operate at the leading edge of technology but take quite different approaches, serving a wide range of customers and end markets. Here’s a breakdown of Codan vs Megaport shares and what I make of their prospects.

The case for Codan

Codan Ltd is an Australian technology powerhouse that designs and manufactures electronic solutions for government, defence, mining, and consumer markets worldwide. With businesses spanning communication systems, metal detection, and mining tech (including Codan Communications, Minelab, Minetec, and Defence Electronics), Codan’s reach is truly global. It manages its own product design and has manufacturing facilities not just in Adelaide but also in Malaysia — as well as sales or support offices across North America, Europe, and the Middle East. According to its company profile, most of its revenue actually comes from North America.

A few standout fundamentals:

• Codan’s market cap is a hefty $9.53 billion, which puts it in the ASX tech heavyweight ranks.
• Its shares are up a thumping 85.5% year-to-date, showing the kind of momentum most investors dream about.
• The company’s dividend history shows a steady (and fully franked) stream of payouts, with a current yield of 0.93% and 100% franking on recent payments — appealing for those wanting some income.
• Codan’s P/E is 54.48, and it reported earnings per share of 0.959. While high, this sort of multiple appears more common among well-loved tech names with rapid growth expectations.

The case for Megaport

Megaport is a star of Australia’s next-gen tech scene, providing a network-as-a-service (NaaS) and cloud connectivity platform. Its software allows customers around the globe to instantly connect across more than 1,100 data centres in over 30 countries, linking directly to the likes of Amazon Web Services, Microsoft Azure, and Google Cloud Platform. In late 2025, Megaport announced a significant expansion into AI compute infrastructure via its acquisition of Latitude.sh, bringing on-demand GPU cloud services under its belt. Its business covers the Americas, Asia-Pacific, EMEA, and now a growing Compute division that pushes into the frontier of AI infrastructure.

Megaport’s key stats in this snapshot:

• A market cap of $4.67 billion makes it a tech mid-cap by ASX standards.
• Year-to-date, Megaport shares have surged 66.9% — a stellar run, even if not quite as meteoric as Codan this year.
• Megaport does not currently pay dividends and its dividend yield is 0.00%, suggesting it’s ploughing all cash into growth.
• Its P/E ratio is an eye-watering 370.00, and its reported EPS is -0.218. (Note: Megaport’s reported P/E ratio may be based on a different earnings measure, such as underlying or forward EPS, than the figure shown here, which is why these numbers might look inconsistent.)

Valuation comparison

The numbers underline just how differently the market views these two tech players:

Metric	Codan	Megaport
Market Cap	$9.53 billion	$4.67 billion
P/E Ratio	54.48	370.00
Dividend Yield	0.93% (100% franked)	0.00%
Earnings Per Share	0.959	-0.218
YTD Return	85.5%	66.9%

Codan’s P/E ratio is high, but compared to Megaport’s eyewatering 370, it appears much more grounded. It’s also delivering consistent profits and dividends, unlike Megaport, which is still reporting negative earnings per share. The huge difference in dividend yield — with Codan offering fully franked dividends and Megaport offering none — might sway investors who prefer some cash returns.

Recent share price performance

Comparing both companies’ share price movements as of 25 September 2026:

• Codan Ltd closed at $52.25, down 0.97% for the day, after a remarkable year powered by an 85.5% year-to-date return.
• Megaport Ltd closed at $19.62, flat for the day, and has delivered a 66.9% year-to-date return.

Both companies have been on strong upward trends, but Codan enjoyed more pronounced positive momentum recently.

Which is the better buy?

So, which one has more upside? For my money, I think Codan gets the edge right now. Both companies have delivered cracking returns in 2026, but Codan’s profits, global reach, and verified track record of paying (and growing) fully franked dividends make it stand out. While Megaport is exciting and at the forefront of cloud and AI, the P/E multiple is extremely stretched, especially considering it’s still loss-making on a reported basis.

That’s not to say Megaport isn’t a great business — it is, and its expansion into AI compute could pay off over time. But if I’m choosing today between Codan and Megaport, I’d lean toward Codan as the tech stock with more upside, given the sharp run in earnings, dividends, and a valuation that’s elevated but not as extreme as Megaport’s.

The post Codan vs Megaport: Which ASX Tech Stock Has More Upside? appeared first on The Motley Fool Australia.

More reading

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• This ASX 200 share hit an all-time high yesterday. Is the sky the limit?

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 Megaport. 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.

Expert analysts are always looking for ASX share opportunities that could deliver a market-beating performance.

We’re going to look at two stocks that experts currently project could double in the year ahead.

Even if the stocks delivered only a third of that projected return, 33% growth would be a very strong result for investors. Let’s look at two of the most exciting prospects on the ASX right now.

Siteminder Ltd (ASX: SDR)

This ASX share is the company behind Siteminder, which claims to be the world’s leading hotel commerce platform, as well as Little Hotelier, an all-in-one hotel management software offering that “makes the lives of small accommodation providers easier”.

It’s an important part of the global hotel ecosystem, generating more than A$85 billion in revenue for hotel customers each year from 140 million reservations.

According to CMC Invest, the business has received 10 ratings in the last three months. Nine of those ratings were a buy, and one was a sell. The average price target across those 10 ratings is $5.45, implying a possible 109% rise over the next year from where it is at the time of writing.

FY26 was a strong period for the ASX share. It reported that annual recurring revenue (ARR) increased by 14.9% to $313.7 million, despite softer global travel conditions. Revenue grew by 18.6% to $266.1 million.

The company noted that net property additions were 5,900, bringing the total properties on its software to 56,000. Pleasingly, average revenue per user (ARPU) grew 5.9% to $429, with increasing smart platform adoption and deeper product penetration across the customer base.

Profitability measures are also improving strongly. The adjusted group gross profit margin increased 84 basis points to 67.2% thanks to operating leverage, AI-driven efficiencies and smart platform contributions.

Adjusted operating profit (EBITDA) soared 96.5% to $28.1 million and adjusted free cash flow rose 123% to $10.5 million.

Overall, things are going very well for the ASX share.

Zip Co Ltd (ASX: ZIP)

Zip is a buy now, pay later (BNPL) company with operations in Australia and the US.

According to CMC Invest, six analyst ratings have been issued on the business in the last three months, and all were buys. The average price target across those six ratings is $4.23, implying a potential 113% rise over the next year from where it is at the time of writing.

Despite the headwinds of higher inflation, the company continues to grow strongly in the US.

In FY26, total transaction volume (TTV) grew 27.2% to $16.7 billion, total income rose 24.6% to $1.35 billion, cash gross profit rose 26.2% to $642.4 million, and cash operating profit (EBTDA) soared 57.9% to $268.9 million. Statutory net profit rose 45.7% to $116.4 million.

In the US, active customers grew 9.3% to 4.65 million, US revenue grew 44.3% to US$613.1 million and US TTV climbed 42.5% to $8.6 billion.

In FY27, the company expects US TTV growth of more than 30% in US dollar terms, while group cash operating profit (EBTDA) is expected to grow by 26% year-over-year to $340 million.

Overall, the ASX share continues to grow strongly.

The post 2 ASX shares tipped to grow 100% or more in the next 12 months appeared first on The Motley Fool Australia.

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

If you are looking for exposure to the booming gold price, then it could be worth considering the ASX 200 gold stock in this article.

That’s because despite rising 250% over the past 12 months, the team at Bell Potter believes there’s still very strong returns to come.

Which ASX 200 gold stock?

The gold stock that Bell Potter is recommending to clients is Minerals 260 Ltd (ASX: MI6).

It is a Perth-based exploration and development company behind the Bullabulling Gold Project (BGP).

Bullabulling has a mineral resource estimate of 6.2Moz at 1.0g/t Au and a recently completed pre-feasibility study outlines a compelling development case for production of 150,000 ounces per annum at an all-in-sustaining-cost of A$2,520 per ounce over a 19 year mine life. 

Bell Potter notes that the ASX 200 gold stock received an additional investment from Franco-Nevada (NYSE: FNV) this month. The broker believes “this represents a strong endorsement by one of the world’s most credible, capable and successful gold investment companies.”

In addition, Bell Potter highlights that the deal significantly de-risks the development of the BGP. It explains:

Following the deal, pro-forma cash will be ~$633m against an estimated $855m pre-production capital requirement per the PFS. A funding gap of ~$250-$300m is expected to be covered by project finance debt. Non-binding term sheets exceeding this requirement have already been received, credibly de-risking the development funding requirement ahead of the Final Investment Decision (FID) planned for 1QCY27. 

This removes near-term financing overhang that can weigh on developer share prices pre-FID. It also puts MI6 in a strong position to negotiate competitive, hedge-free terms for its debt. MI6 has a demonstrated strategy of using its strong funding position to de-risk its development schedule and budget via early commitment to water infrastructure, grade control drilling, camp construction and personnel buildout.

Should you invest?

According to the note, Bell Potter has retained its buy rating on the ASX 200 gold stock with a slightly improved price target of $1.45 (from $1.40). 

Based on its current share price of 84 cents, this implies potential upside of almost 73% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

MI6 offers gold exposure via the 6.2Moz BGP, valuation uplift through discovery success, project advancement and de-risking as the BGP progresses towards production. MI6 is now largely funded to develop the BGP and on track to complete a DFS and make a FID in early CY27, plus secure long-lead items and commence early site works.

The post Up 250% in 12 months, Bell Potter says this ASX 200 gold stock can rise another 73% appeared first on The Motley Fool Australia.

More reading

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• If I’d put $3k in this ASX 200 gold stock 12 months ago, I’d have $12,500 now
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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 recommended Franco-Nevada. 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.