Dicker Data vs Megaport shares

Many Aussie investors looking to back tech may consider Dicker Data Ltd (ASX: DDR) or Megaport Ltd (ASX: MP1) for the growth and innovation in their portfolios. While both operate in the broader technology sector, Dicker Data focuses on wholesale IT distribution, while Megaport delivers network and cloud connectivity. If you’re weighing up Dicker Data vs Megaport shares, let’s dig into the key differences, strengths, and opportunities that set these two apart.

The case for Dicker Data

Dicker Data is a well-established IT distributor supplying computer hardware, software, cloud, and related technology products to Aussie and Kiwi businesses. Founded back in 1978, Dicker Data has built a robust client base across Australia and New Zealand, with more than 12,500 customers across Australia and in New Zealand, as of its company profile. The company highlights a hands-on approach, keeping its operations mostly in-house for faster and localised service.

Looking at fundamentals, Dicker Data stands out with:

• P/E Ratio of 25.31, suggesting investors expect reasonable future growth but at a more moderate valuation relative to the sector’s high flyers.
• A fully franked dividend yield of 3.05%, backed up by a strong history of regular, fully franked payouts — something many income-focused investors will appreciate.
• A market cap of $2.72 billion, making it a sizable but not top-heavy player in the Aussie tech landscape.

Dicker Data’s ability to blend growth with income, thanks to persistent profitability and payout history, is a key part of its appeal.

The case for Megaport

Megaport is a global network-as-a-service powerhouse connecting customers across a huge network of over 1,200 data centres is more than 30 countries. Its technology gives businesses nearly instant, flexible connections to top cloud platforms such as AWS, Microsoft Azure, and Google Cloud – all without long-term lock-ins. The company made a big move into AI compute infrastructure in late 2025, acquiring Latitude.sh and adding virtual GPU cloud services, which could drive new growth. Megaport now splits operations into three regional networks and its new Compute division.

Megaport’s fundamentals paint a picture of a high-growth tech story:

• Year to date, shares have rallied 57.7%.
• Market cap is $4.49 billion, making it one of the bigger homegrown tech names on the ASX.
• It doesn’t currently pay a dividend, choosing to reinvest for aggressive expansion.

Investors chasing disruption and global growth might be drawn to Megaport’s scale and reach — but it comes with typical ‘new tech’ risks and volatility.

Valuation comparison

Here’s a clear look at the key valuation differences:

	Dicker Data	Megaport
Market Cap	$2.72 billion	$4.49 billion
P/E Ratio	25.31	370.00
Dividend Yield	3.05% (fully franked)	0.00%
Earnings per Share	0.590	-0.218
Year to Date Return	48.5%	57.7%

One thing stands out immediately: Dicker Data is turning a profit, paying reliable fully franked dividends, and trading at a P/E that’s still high but far below Megaport’s nosebleed 370.00. Megaport’s negative EPS (-0.218) is inconsistent with its extremely high P/E ratio, likely because its P/E is calculated on underlying or forward earnings — so take that number with a big grain of salt. Dicker Data looks much more mature, while Megaport’s market cap and valuation reflect investor optimism about its potential future earnings.

Recent share price performance

Both companies have enjoyed remarkable share price momentum in 2026, but let’s break it down:

• Dicker Data’s price history (24 Aug–21 Sep 2026) shows steady gains, with a couple of sharp daily jumps, notably a 20.66% surge on 28 August. Overall, shares are up 48.5% year to date.
• Megaport’s price history covers the same date range (24 Aug–21 Sep 2026), with a more dramatic 7.6% gain in one session and a few volatile down days, including an -8.3% stumble. But the stock is up an even stronger 57.7% year to date.

Which is the better buy?

If I’m backing raw upside in tech and don’t mind some bumpiness along the way, my pick would be Megaport. The company’s sky-high valuation (P/E of 370.00, and not yet profitable on a reported basis) means shares are priced on hopes for huge future growth — especially after the AI compute expansion. Its recent price run (+57.7% YTD), global reach, and expansionist energy signal a business chasing big opportunities, not dividends.

But if I want something steadier, with real profits and reliable fully franked income, Dicker Data stands tall. A 3%-plus dividend, a history of payout increases, and a market multiple far below Megaport’s make this a strong contender for those prioritising consistency or tax-effective yield.

In short, I reckon Megaport offers greater potential upside, but Dicker Data gives me solid value and income right now. For pure upside — and a whiff of risk — I’d lean towards Megaport. But both look like worthy, albeit very different, ways to ride the Aussie tech wave.

The post Dicker Data vs Megaport: Which ASX tech share has more upside? 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 Megaport. The Motley Fool Australia has positions in and has recommended Dicker Data. 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.

The S&P/ASX 200 Index (ASX: XJO) has been seesawing for most of Wednesday.

After climbing as high as 8,791 points earlier in the session, the benchmark gave up its gains and slipped into negative territory.

But the selling didn’t last, with the ASX 200 recovering to 8,769 points in late afternoon trade, putting it 0.13% higher for the day.

That’s a recovery of around 26 points from today’s low of 8,742, with mining shares helping offset weakness across several other sectors.

The index is now up approximately 1.1% over the past week, although it remains 3.2% lower over the past month.

So, is a recovery finally getting underway?

A mixed finish on Wall Street

Investors didn’t get much direction from Wall Street overnight, with the major US indices finishing Tuesday’s session mixed.

The Dow Jones Industrial Average Index (DJX: .DJI) slipped 0.36%, while the S&P 500 Index (SP: .INX) finished basically flat.

Meanwhile, the Nasdaq Composite Index (NASDAQ: .IXIC) gained 0.45%, reaching another record close as tech shares continued to attract buyers.

US banking shares struggled, with the financial sector falling almost 2% and weighing on the wider market.

Oil prices also moved lower, with Brent crude falling below US$100 a barrel amid hopes of improved supply from the Middle East.

Miners are keeping the ASX 200 afloat

Mining shares are providing much of the support today, with several major resource companies trading higher.

BHP Group Ltd (ASX: BHP) has climbed 1.54% to $62.16, while Rio Tinto Ltd (ASX: RIO) is up 0.95% to $167.88.

BHP is also paying its final dividend of US$0.99 per share today, following its ex-dividend date on 3 September.

The buying has extended to gold miners, with several of the larger producers also moving higher.

Northern Star Resources Ltd (ASX: NST) has gained 4.17% to $22.85, and Evolution Mining Ltd (ASX: EVN) is trading 2.89% higher at $14.05.

Banks and energy shares head lower

The major banks are heading in the opposite direction, with Commonwealth Bank of Australia (ASX: CBA) slipping 0.81% to $151.09.

ANZ Group Holdings Ltd (ASX: ANZ) has fallen 1.21% to $37.69, while Westpac Banking Corp (ASX: WBC) is down 0.97% to $34.57.

Energy shares are also struggling following the overnight decline in oil prices, with Woodside Energy Group Ltd (ASX: WDS) falling 2.07% to $31.02.

Elsewhere, Insurance Australia Group Ltd (ASX: IAG) has dropped 2.11% to $7.90 after the ACCC blocked its proposed $1.35 billion acquisition of RAC Insurance.

The ACCC said the proposed acquisition would substantially lessen competition in Western Australia’s motor vehicle and home insurance markets.

Is a recovery on the table?

The ASX 200 has now recovered more than 100 points from its 15 September low of 8,657 points.

However, the benchmark remains well below its August high of 9,220 points, which means there’s still considerable ground to make up.

Investors are also looking ahead to the Reserve Bank’s next interest rate decision on 29 September.

The cash rate currently stands at 4.35%, with Governor Michele Bullock warning that upside risks to inflation may be materialising.

The post ASX 200 turns higher after a rocky start. Is a recovery on the table? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.

It’s been a difficult September for PLS Group Ltd (ASX: PLS) shareholders, despite the lithium miner’s impressive gains over the past year.

The stock has climbed around 85% over the past 12 months, but has fallen more than 22% since closing at $5.48 on 1 September.

Today is offering some relief, though, with the PLS share price rising 2.79% to $4.245 in mid-afternoon trade.

However, despite the company’s improving financial performance, short sellers are still betting heavily against the stock.

In fact, PLS remains one of the most heavily shorted stocks on the ASX.

So, why are traders betting against the lithium miner?

The bears are still circling

According to the latest short-selling data, PLS is currently the 9th most shorted stock on the ASX.

As of 16 September, approximately 11.07% of its shares were held in short positions, representing more than 357 million shares.

That’s a substantial amount of money betting on the lithium miner’s share price falling further.

For those unfamiliar, short sellers borrow shares and sell them, hoping to buy them back at a lower price and pocket the difference.

With lithium prices still volatile, another pullback could take a decent chunk out of PLS’ earnings.

That’s something to watch as the company prepares to lift production again in FY27.

October could be a big test

PLS announced today that its September quarterly activities report will be released on 27 October.

The update will show how the miner is tracking against its FY27 production targets.

The company is forecasting production of between 1.03 million and 1.10 million tonnes this financial year, up from 879,500 tonnes in FY26.

Much of that increase will come from the restart of its Ngungaju processing plant, which began ramping up in July.

PLS is also expecting operating costs of between $575 and $625 per tonne, alongside capital expenditure of $620 million to $685 million.

Personally, I’ll be watching production, realised lithium prices, and cash generation closely.

The short interest is already above 11%, and a solid quarterly result could put some pressure on those betting against the stock.

Could short sellers get caught out?

While short sellers are betting on further weakness, analysts are pointing to a considerably higher share price.

According to TipRanks, the average 12-month price target from 12 analysts is $5.55, implying about 31% upside from today’s price.

7 analysts have buy ratings, 3 recommend holding, and 2 have sell ratings.

With so many shares currently shorted, I think the next few weeks could be very interesting.

The post PLS shares have surged 85% in a year. So why are short sellers circling? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Could this evolving development smash ASX lithium shares like Liontown, Mineral Resources and PLS?
• Is the PLS Group share price a buy in September?
• ASX 200 drops again as selling continues
• Buy, hold, sell: Magellan, Iluka Resources, PLS Group shares

Motley Fool contributor Aaron Teboneras 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.