Temple & Webster vs Nick Scali shares: Furniture retail head-to-head

If you’re tossing up between Temple & Webster Group Ltd (ASX: TPW) and Nick Scali Ltd (ASX: NCK) shares, you’re not alone. Both companies are leaders in the Australian furniture retail space, but take very different approaches. With digital disruption shaking up the industry, one is an online-only growth play, while the other is a well-established, dividends-paying bricks-and-mortar business with growing international reach. Here’s how they stack up against each other.

The case for Temple & Webster Group

Temple & Webster is Australia’s largest pure-play online furniture and homewares retailer. Launched in 2011, it quickly carved a niche for itself, now offering an enormous range of over 200,000 products aimed at furnishing and decorating Australian homes and offices. Its model skips physical showrooms entirely, keeping costs low and focusing on customer convenience.

Several key metrics define Temple & Webster’s investment case:

• P/E Ratio: 127.09 – It’s priced for growth, which signals high expectations for future earnings but also brings risk if growth lags.
• Dividend Yield: 0.00% – Temple & Webster doesn’t pay dividends, choosing to funnel any profits back into expanding the business.
• Year To Date Return: -67.8% – The shares have had a very tough run lately, down substantially this year.

Temple & Webster has more than a million Australian subscribers and incorporates private label brand Milan Direct. However, as a pure-play online retailer, it’s heavily exposed to changing consumer sentiment and digital competition.

The case for Nick Scali

Nick Scali is a long-established name in the Australian furniture scene. Founded in 1962, it operates a sprawling network of Nick Scali and Plush stores across Australia and New Zealand, and is now setting sights on the UK with recent acquisitions and store rebranding. The business is known for its sofas but also covers most household furniture.

Notable fundamentals for Nick Scali:

• P/E Ratio: 16.11 – Far lower than Temple & Webster’s, reflecting more stable, mature earnings.
• Dividend Yield: 5.05% (fully franked) – A strong, fully franked income stream, with a history of consistent dividend payments.
• Year To Date Return: -37.8% – The shares have also dropped sharply this year, but less so than Temple & Webster.

Nick Scali’s model combines physical presence with growing e-commerce. It’s a reliable cash-generating business, as shown by a dividend per share of $0.78 and a long history of fully franked payouts.

Valuation comparison

Here’s how the major numbers stack up:

	Temple & Webster	Nick Scali
Market Cap	$511.64 million	$1.23 billion
P/E Ratio	127.09	16.11
Earnings per share	0.064	0.885
Dividend Yield	0.00%	5.05% (100% franked)
Dividend per share	N/A	$0.78

Nick Scali stands out for value-conscious investors, with a much lower P/E and a high, franked yield, reflecting its consistent profit and mature business model. Temple & Webster’s extremely high P/E signals a business the market expects to grow rapidly – although such multiples can unravel quickly if those expectations aren’t met.

Note: Temple & Webster’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.

Recent share price performance

Comparing recent share price trends until 23 September 2026:

• Temple & Webster: Closed at $4.41 on 23 Sep 2026, gaining 4.8% that day but still suffering a year-to-date return of -67.8%.
• Nick Scali: Closed at $14.40 on 23 Sep 2026, rising 1.0% that day with a year-to-date return of -37.8%.

Both companies have been hit hard in 2026, but Temple & Webster shares have fallen almost twice as much as Nick Scali’s.

Which is the better buy?

For my money, I’d lean toward Nick Scali as the better buy right now. The reasons? First, Nick Scali offers a much lower P/E ratio and a high, franked dividend yield of over 5%, so you’re getting paid to wait even if the business hits some bumps. While both shares are deep in the red year to date, Temple & Webster’s steeper fall and nosebleed valuation multiple set a higher bar for recovery. Of course, if you have a high-risk tolerance and believe in the long-term potential of online retail, you might prefer Temple & Webster’s growth option. But personally, I prefer Nick Scali’s steadier earnings, dividends, and international expansion story at today’s price.

The post Temple & Webster vs Nick Scali: Which furniture 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 Temple & Webster Group. The Motley Fool Australia has recommended Nick Scali and Temple & Webster 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.

It was a busy week for Australia’s top brokers. This has led to a number of broker notes being released. 

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Evolution Mining Ltd (ASX: EVN)

According to a note out of UBS, its analysts upgraded this gold miner’s shares to a buy rating with an improved price target of $16.00. The broker made the move following site visits, which have given UBS confidence in Evolution Mining’s production growth outlook. It sees scope for the company to increase its gold production to 900,000 ounces per annum and its copper production to 120,000 tonnes per annum by 2032. Key drivers of this are expected to be its Cowal and Northparkes operations and underground mining. The Evolution Mining share price ended the week at $13.71.

Nufarm Ltd (ASX: NUF)

A note out of Morgans reveals that its analysts have retained their buy rating on this agricultural chemicals company’s shares with an improved price target of $4.24. This follows the release of its guidance for FY 2026. Morgans believes that Nufarm would’ve beaten consensus expectations were it not for two unplanned manufacturing disruptions. This is especially the case given that Seed Technologies earnings have once again been upgraded due to higher Omega-3 prices. The broker remains very positive and highlights that Nufarm is on track to materially deleverage, with further improvement targeted in FY27. So, with its turnaround plans on track and its shares looking materially undervalued compared to peers, Morgans thinks now could be a good time to invest. The Nufarm share price was fetching $3.04 at Friday’s close.

Premier Investments Ltd (ASX: PMV)

Analysts at Bell Potter have retained their buy rating on this retail conglomerate’s shares with a trimmed price target of $15.50. According to the note, Premier Investments delivered an FY 2026 result that was in line with expectations. Outside this, the broker notes that while it is expecting a period of slow growth in the near to medium term, it views Premier Investments’ forward multiple as attractive. In fact, its sum of the parts valuation sees an attractive ~$1.6 billion enterprise value for the key Peter Alexander brand. This compares to the company’s $1.9 billion market capitalisation. The Premier Investments share price ended the week at $11.77.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

National Australia Bank vs ANZ shares: which delivers better income?

When it comes to income investing, the big four banks are perennial favourites among Aussie shareholders. But which comes out ahead — National Australia Bank Ltd (ASX: NAB) or ANZ Group Holdings Ltd (ASX: ANZ)? Both are banking giants with substantial dividends and a long history of rewarding shareholders. Let’s break down the data to see which looks better for those chasing income, and whether one offers a stronger investment case right now.

The case for NAB

National Australia Bank is a mainstay of Australia’s financial landscape, providing a broad spectrum of banking and wealth management services. Its primary operations are in Australia and New Zealand, with a presence in Asia, UK, and the US. As one of the nation’s ‘big four’ banks by market cap, NAB stands out for its scale and established reputation.

A few things jump out from the latest data:

• NAB boasts a market capitalisation of $120.37 billion, edging out ANZ and confirming its position as one of the country’s very largest listed firms.
• Its dividend yield sits at 4.39%, with dividends fully franked at 100%.
• NAB’s dividend history is both long and consistent, with recent annual dividends per share reaching $1.70, and all recent dividends fully franked — a feature especially appealing to Aussie investors seeking tax-effective income.

NAB bank runs a comprehensive range of services, but for me, it’s the fully franked dividend paired with its massive scale that makes NAB a classic income pick.

The case for ANZ

ANZ Group Holdings is another pillar of Australia’s banking sector, tracing its roots back to its 1969 ASX listing. The company claims, as of its latest public description, to serve over 8.5 million customers across nearly 30 markets. Like NAB, ANZ is globally diversified but with a strong anchor in Australia and New Zealand.

The metrics worth noting here include:

• ANZ’s market cap came in just below NAB, at $115.06 billion, so it’s a touch smaller but still an absolute giant.
• Its latest dividend yield is 4.36%, incredibly close to NAB.
• Dividends total $1.66 per share based on the most recent data, but unlike NAB, ANZ dividends are only partially franked (most recently at 75%), and the franking rate has been trending lower in recent payments.

While ANZ’s payout and yield are virtually identical to NAB’s, the lower franking means the after-tax income for Australian investors could be less attractive.

Valuation comparison

Both NAB and ANZ trade on seemingly similar valuations, but there are a couple of fine points of difference. Here’s how they line up on the key income metrics:

	National Australia Bank	ANZ
Market Cap	$120.37 billion	$115.06 billion
P/E Ratio	19.36	19.28
Dividend Yield	4.39%	4.36%
Dividend per Share	$1.70	$1.66
Franking	100%	75%
Earnings per Share	2.000	1.973

NAB offers slightly higher dividends, fully franked, while ANZ’s payout is almost the same dollar amount but only 75% franked, so you might not pocket quite as much after tax. Their P/E ratios and EPS numbers are effectively matched, suggesting the market prices them on similar expectations.

Recent share price performance

Comparing share price activity until 22 September:

• National Australia Bank closed at $38.61 on 22 Sep 2026. Its year to date return is -6.5%, reflecting a moderate downturn over 2026 so far.
• ANZ Group Holdings closed at $38.15 on 22 Sep 2026. Its year to date return is a positive 6.9%, showing genuine strength versus NAB over the same period.

It’s clear that while both shares are trading at almost identical levels, ANZ has delivered solid positive momentum this year, whereas NAB has slipped backwards.

Which is the better buy?

If income is my main focus, I’d favour National Australia Bank over ANZ Group right now. Both offer near-identical headline dividend yields and similar payout levels, but NAB delivers 100% franking on its dividends — that’s a real edge for Aussie shareholders chasing the maximum after-tax income. The consistent franking, especially compared to ANZ’s recent trend of partial franking, makes a big difference come tax time.

On the other hand, ANZ is enjoying notably stronger share price momentum based on year-to-date returns. If total shareholder return (dividends plus price appreciation) is your true goal, ANZ’s recent outperformance could tip the scales, at least in the short term.

But for me, the promise of fully franked, reliable dividends still matters more than a few months of price action. Provided NAB can keep up its track record, it’s the better buy for an income investor in this big bank showdown.

The post NAB vs ANZ: Which big four bank is the better passive income stock? appeared first on The Motley Fool Australia.

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• ANZ shares have climbed 13% in a year. Is there still room to run?
• Is NAB one of the best ASX dividend shares to buy?

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.