Woodside Energy Group vs Ampol shares: Which ASX energy stock looks better?

With energy prices a big topic for Aussie investors and global themes front of mind, both Woodside Energy Group Ltd (ASX: WDS) and Ampol Ltd (ASX: ALD) land in the spotlight. As two of the largest names in oil and gas, yet with different business models, many will be wondering which company’s shares are the better buy today. Here’s how they stack up across their core businesses, fundamentals, value, dividend payouts, and recent momentum.

The case for Woodside Energy Group

Woodside Energy Group is Australia’s largest dedicated oil and gas operator. Producing mainly LNG, oil, and gas from a range of large offshore assets, Woodside is seen as a heavyweight in the sector. After merging with BHP’s oil and gas business, Woodside further cemented its status as a truly global energy player. The company, founded in 1954 and listed on the ASX since 1971, holds big production scale and a broad asset base spanning Australia and international waters.

Looking at key fundamentals:

• Market Cap: $61.63 billion – one of the top 20 listed companies in Australia
• P/E Ratio: 14.32 – not far from the broader ASX average for a large energy producer
• Dividend Yield: 5.03% (fully franked, as per its most recent figures)
• Year To Date Return: 44.3% – a hefty share price run over the current calendar

Woodside has a long, consistent track record of large, fully franked dividends for shareholders stretching back decades, with its last payment at $0.57 per share (fully franked). The company’s scale and resources offer stability, even as it faces the long-term headwinds familiar in fossil fuels.

The case for Ampol

Ampol is better known to most Aussies as the brand behind roughly 2,000 service stations nation-wide. As Australia’s only listed refiner and one of the largest distributors of petroleum products, Ampol’s business is all about refining (primarily from its Lytton plant in Brisbane) and big-volume fuel retail and distribution. The company trades on history – it’s well over a century old, formerly operated as Caltex, and has more recently focused on retailing and logistics (while also maintaining a presence in New Zealand via Z Energy and a significant stake in Philippine fuel company Seaoil).

Ampol’s standout numbers:

• Market Cap: $10.28 billion – much smaller than Woodside, but still substantial
• P/E Ratio: 7.18 – sitting well below both Woodside and the broader market average for large caps
• Dividend Yield: 5.68% (fully franked, per latest figures)
• Year To Date Return: 42.8% – almost matching Woodside’s strong gains

Consistent, fully franked dividends are a feature here as well, with Ampol’s last interim dividend coming in at $1.85 per share (fully franked). Its lower P/E ratio draws attention for value hunters, though its business is more exposed to the ups and downs of retail volumes and margins.

Valuation comparison

Both Woodside and Ampol offer eye-catching yields and have strong profit track records, but a few numbers really stand out when viewed side-by-side:

Metric	Woodside Energy	Ampol
Market Cap	$61.63 billion	$10.28 billion
P/E Ratio	14.32	7.18
Dividend Yield	5.03% (100% franked)	5.68% (100% franked)
Earnings Per Share	1.605	7.444

Ampol’s much lower P/E signals a potentially cheaper earnings valuation compared to Woodside, at least based on recent profits. Its higher (and also fully franked) dividend yield adds to the appeal for income seekers. Do note: the reported EPS and P/E for Ampol line up mathematically, but Woodside’s numbers appear less in sync, possibly due to differences in the basis of the earnings measurement shown.

Recent share price performance

Both companies have delivered big gains for shareholders recently, but their price histories reveal a bit more detail. Comparing the past month:

• Woodside Energy: Rose from $33.78 (21 Aug) to $32.42 (18 Sep), actually showing a small drop over this period despite a strong YTD number. Its year to date return is up 44.3%.
• Ampol: Climbed from $39.85 (21 Aug) to $43.13 (18 Sep), reflecting a net gain for the span, and a 42.8% year to date return.

The momentum is strong for both, but Ampol’s recent month shows steadier progress.

Which is the better buy?

On a pure numbers basis, I’d lean toward Ampol right now. It trades on a much lower P/E than Woodside Energy (7.18 versus 14.32), offers a higher fully franked yield (5.68%), and has kept pace with Woodside’s strong share price run so far this year. While Woodside’s scale gives it stability and huge assets, that’s already reflected in its rich $61 billion market cap. Ampol’s business is more retail-facing, but its valuation and income look appealing for everyday investors. That said, Woodside’s larger projects and global reach do offer defensive qualities if you’re chasing blue chip exposure and long-term oil and gas. For value and income at today’s prices, my pick would be Ampol – but both names deserve a spot on any energy watchlist.

The post Woodside vs Ampol: Which ASX energy stock should you buy? 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 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.

Telix Pharmaceuticals Ltd (ASX: TLX) shares were dominating headlines yesterday after the biopharmaceutical company’s shares crashed almost 12% in a single session. 

Investors were exiting their positions in Telix after the company announced a $3.3 billion merger with German company ITM. 

What is the merger?

Telix announced a merger with ITM Isotope Technologies Munich SE, a global leader in therapeutic radioisotopes. 

As reported by Laura Stewart yesterday, the deal could create a radiopharmaceutical powerhouse, with combined estimated 2026 revenue over US$1.3 billion and deeper supply chain security for Telix’s growing pipeline.

Telix said regarding the deal:

The merger will further strengthen Telix’s leadership as a vertically integrated radiopharmaceutical company with the capabilities required to develop, manufacture and deliver innovative treatments to patients globally. The combined organisation will be uniquely positioned as a radiopharmaceutical industry leader, differentiated by a world-class scaled isotope manufacturing business with a validated global distribution network, a market-leading commercial precision medicine platform and the industry’s most extensive therapeutic radiopharmaceutical pipeline.

However investors seemingly were unimpressed by the announcement, as Telix shares fell over 11%. 

Telix shares remain up 38% year to date. 

What is Bell Potter’s view?

Following the announcement, Bell Potter provided updated guidance on Telix shares. 

The broker’s view on Telix’s proposed merger with ITM is broadly positive from a strategic perspective, with the transaction providing Telix with significant exposure to the rapidly growing lutetium-177 (Lu-177) market and creating a vertically integrated radiopharmaceutical company spanning isotope production, drug development and manufacturing. 

However, Bell Potter also recognises the near-term risks, including approximately 24% ownership dilution to existing Telix shareholders, around US$302m of additional net debt, potential FY27 earnings dilution, and regulatory and execution risks associated with ITM-11 following the FDA’s recent Complete Response Letter. 

Overall, the merger strengthens Telix’s long-term strategic position and provides exposure to a potentially much larger radiopharmaceutical market. 

However the benefits are likely to take time to flow through to earnings, explaining the muted initial market reaction.

Once in a lifetime opportunity

Bell Potter retained its buy recommendation following the announcement and has an unchanged price target of $19 on Telix shares. 

The broker said they are yet to include the earnings impact from the transaction in our forecast,

Nevertheless, it represents a once in a lifetime opportunity to acquire a dominant share in the supply of Lu-177 that is very difficult to replicate. While earnings may take a year or two to realise, the underlying value is obvious. Maintain Buy rating.

The price target from Bell Potter indicates an upside potential of 20% for Telix shares. 

The post What is this broker’s view on Telix shares after yesterday’s crash? appeared first on The Motley Fool Australia.

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

Australia’s artificial intelligence landscape has been in focus the past week after AI giant Anthropic signed an agreement to use part of a $32 billion data centre proposed for a site on Queensland’s Western Downs.

According to The ABC, the data centre is set to be the largest in Australia and will draw as much power as about 1.5 million average Australian households.

Anthropic aims to start using the centre in 2027 to power its artificial intelligence program Claude to answer user questions, rather than for training AI models.

What does it mean for ASX AI shares?

Anthropic’s agreement to anchor a proposed $32 billion data-centre development in Queensland is more than another major artificial intelligence announcement. 

It is a sign that the next phase of the AI boom is increasingly becoming a story about data centres, electricity, connectivity and physical infrastructure.

Importantly, the companies positioned to benefit may not necessarily be the businesses developing AI models themselves. 

Instead, they could include data centre operators, property developers, telecommunications and connectivity providers, electricity generators and infrastructure companies.

Here are three ASX AI shares to keep an eye on. 

Nextdc Ltd (ASX: NXT)

This ASX stock is one of the most obvious Australian-listed beneficiaries of increasing demand for data-centre capacity.

The company has been aggressively expanding its data-centre footprint as demand from cloud computing and AI increases.

The Queensland announcement doesn’t directly add revenue to NextDC, as the Western Downs project is not a NextDC development.

However, it provides another piece of evidence that AI companies are prepared to make substantial, long-term commitments to computing infrastructure.

Goodman Group (ASX: GMG)

Goodman Group (ASX: GMG) offers another way to gain exposure to the theme.

It is traditionally known for logistics and industrial property. 

However Goodman Group has increasingly positioned itself around data-centre development.

A significant proportion of the group’s development pipeline is now associated with data centres.

This is an important development because the AI boom is creating demand for a very different type of real estate.

A hyperscale AI data centre needs enormous amounts of electricity, fibre connectivity, cooling capacity and grid access.

That scarcity can potentially make suitable sites extremely valuable.

Dexus (ASX: DXS)

Dexus (ASX: DXS) is particularly interesting because it has an actual connection to the proposed Queensland development.

Dexus’s Australian Data Centres business will be working with partners on the Western Downs project.

That doesn’t mean Dexus will receive anything approaching $32 billion in revenue.

But it does give the company direct exposure to the development of Australia’s rapidly expanding data-centre infrastructure.

For investors, the distinction between project value and corporate earnings remains critical.

The post What does Anthropic’s $32b Queensland data centre mean for ASX AI shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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 Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.