Westpac vs National Australia Bank shares: Which big bank could be the better buy?

If you’re weighing up Westpac Banking Corp (ASX: WBC) against National Australia Bank Ltd (ASX: NAB), you’re not alone. These two stalwarts sit among the ‘big four’ and anchor many Aussie portfolios and super funds. Their sheer size and history make both popular for long-term income seekers, but subtle differences in dividends, valuation and recent price momentum could tip the scales if you’re looking for a potential edge.

The case for Westpac

Westpac is Australia’s oldest bank, dating all the way back to 1817. Today, it holds one of the largest footprints of any financial institution in the country with a range of consumer, business and wealth banking brands including St.George, Bank of Melbourne, BankSA and BT. Westpac provides everything from mortgages and deposits to institutional banking.

Three fundamentals stand out for me:

• Dividend yield: 4.49% with 100% franking, making it attractive for income-focused investors, especially those seeking tax-effective payouts.
• P/E ratio: 16.91, putting Westpac at a lower valuation than NAB on this simple metric.
• Earnings per share: $2.029, marginally higher than NAB’s reported figure.

Dividend stability and a long track record add to Westpac’s appeal. According to its most recent public description, Westpac remains one of the top listed companies on the ASX, backed by diversified operations across both retail and institutional markets.

The case for National Australia Bank

NAB is another giant, tracing its present structure to 1982 and serving millions across Australia and New Zealand, with international outposts in the UK, the US and Asia. It delivers a similar suite – home loans, business banking, wealth management – with a significant focus on both domestic and overseas growth.

Here are its key drawcards:

• Dividend per share: $1.70, higher than Westpac’s $1.54 (as per the latest data), and also fully franked.
• Market cap: $119.71 billion, fractionally above Westpac and suggesting slightly more investor confidence in the current climate.
• Dividend yield: 4.42% – only a whisker below Westpac’s but with a higher absolute dividend payment per share.

NAB’s broader international exposure and a reputation for steady payouts, as reinforced by its company profile, cement its spot at the top end of the ASX.

Valuation comparison

Let’s put the most relevant metrics head-to-head:

	Westpac	NAB
Market Cap	$117.80b	$119.71b
P/E Ratio	16.91	19.25
Dividend Yield	4.49%	4.42%
Dividend per Share	$1.54	$1.70
EPS	$2.029	$2.000
Franking	100%	100%

Westpac currently trades at a lower P/E multiple than NAB, meaning you’re paying a little less per dollar of reported earnings. The dividend yields are close (Westpac higher by 0.07 points), but NAB’s dividend per share is larger. EPS is almost neck and neck. Note: NAB’s higher dividend payout versus similar earnings per share could indicate either a higher payout ratio or greater profit stability – but payout ratios themselves weren’t in the data provided for this comparison.

Recent share price momentum

Comparing recent share price performance up to I’ll use 5 October 2026:

• Westpac: Closed at $34.44 as of 5 October 2026, finishing the day 0.35% higher.
• NAB: Closed at $38.40 on the same date, registering a 0.26% intraday dip.
• Year to date: Westpac is down -9.1% YTD, while NAB has dropped -7.0% over the same period.

Both banks have had a soft year, but NAB’s share price has held up a touch better so far in 2026.

Which is the better buy?

Both Westpac and NAB offer strong brand power, broad services and full franking—a trio of traits most Aussie income investors prize. If what you want is a slightly higher yield and lower valuation, I think Westpac edges ahead, especially if you believe the market is being too harsh with its recent price drop. Its P/E ratio undercuts NAB by a useful margin, and with a fully franked yield, that’s a handy combo for value-conscious portfolios.

On the other hand, NAB’s larger dividend payment and slightly lower share price volatility this year are also hard to ignore. But paying a higher P/E for almost the same underlying earnings and yield doesn’t sway me. For my money, I’d lean toward Westpac for its blend of yield and comparative valuation at current prices—while fully acknowledging that the margin is slim, not overwhelming. Ultimately, both are formidable blue-chip foundations, but in a straight shootout based on the latest numbers, my pick would be Westpac.

The post Westpac vs NAB shares: Which big bank is the better 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.

A $100,000 ASX share portfolio is a significant milestone.

But how much passive income could it actually generate?

Let’s run the numbers and find out.

What could $100,000 generate?

A reasonable target for an income-focused ASX portfolio could be a dividend yield of around 4% to 5%.

At a 4% yield, a $100,000 portfolio would generate approximately $4,000 in passive income each year.

Increase the yield to 5% and that rises to $5,000 annually. That is before tax and does not include the potential benefit of franking credits.

I wouldn’t simply search the ASX for the shares offering the biggest dividend yields, though. Very high yields can sometimes be a warning sign that investors expect the dividend to be reduced.

Instead, I would look for businesses with sustainable cash flows and a reasonable prospect of maintaining or growing their distributions over time.

Infrastructure stocks could play a role. APA Group (ASX: APA), for example, owns energy infrastructure that generates relatively predictable cash flows, while Transurban Group (ASX: TCL) collects toll revenue from major road networks.

Property could provide another source of income. HomeCo Daily Needs REIT (ASX: HDN) owns assets exposed largely to everyday spending and currently offers a higher distribution yield than many traditional blue-chip shares.

These could be mixed with established dividend payers such as Wesfarmers Ltd (ASX: WES), rather than relying too heavily on any individual company or sector.

Another way to use the $100,000

There is also an alternative for investors who don’t need the passive income today.

Rather than immediately building a portfolio around dividends, I think there is a strong case for focusing on total returns and allowing the $100,000 to compound for longer.

For example, if $100,000 grew at an average rate of 10% a year with all income reinvested, it could become approximately $260,000 after 10 years.

At a 5% yield, that larger balance could then generate around $13,000 in annual passive income.

After 20 years, the same $100,000 could grow to approximately $670,000 at that return.

A 5% yield on that balance would generate around $33,500 a year.

Of course, a 10% annual return isn’t guaranteed.

But I think it shows why investors with time on their side may want to concentrate on growing the portfolio first and worry about maximising passive income later.

The post How much passive income can I make from a $100,000 ASX share portfolio? 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 positions in and has recommended Transurban Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX shares that experts rate very positively could be exciting opportunities.

When some businesses have received numerous buy ratings from experts, they are worth a closer look.

Businesses with rapidly growing revenue could be particularly compelling.

Life360 Inc. (ASX: 360)

Life360 is best known as a tech business that provides an app for families to keep track of each other. It operates in numerous countries, including the US, the UK, ANZ and Canada.

It’s currently rated as a buy by 14 analysts, according to Commsec. It’s one of the most heavily backed ASX shares right now.

The company is growing strongly – in the second quarter of 2026, it revealed significant growth.

Revenue grew by 38% to $159 million, with monthly active users (MAU) rising 16% to 102.4 million and paying global circles growing by 27% to 3.2 million. US paying circles grew 25% to 2.3 million and international paying circles soared 34% to 0.4 million.

The ASX share has looked to monetise its non-paying circles through advertising. In the three months to June 2026, advertising revenue grew 315% to $22 million.

Life360’s profitability metrics are also expanding rapidly. Adjusted operating profit (EBITDA) grew 53% to $20.3 million and positive operating cash flow soared 79% to $23.8 million.

Given that Life360’s share price is down more than 60% over the past year (at the time of writing), it could be a very underrated business at this valuation amid worries about AI.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is another ASX share that is strongly backed by analysts.

It is currently rated as a buy by nine analysts, according to Commsec.

Pro Medicus describes itself as a leading healthcare informatics company. It says it provides a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide.

FY26 was another strong year for the company – revenue grew 22.9% to $261.7 million, underlying operating profit (EBIT) rose 24.4% to $196.1 million, and underlying net profit increased 24.1% to $144.7 million.

However, given how much of the ASX share’s revenue now comes from the US, foreign currency plays a sizeable role in the financials. If exchange rates hadn’t changed, underlying revenue would have grown 28.4% to $273.5 million, underlying EBIT would have risen 30.6% to $206 million and underlying NPAT would have risen 32.5% to $154.5 million.

Future earnings growth looks very positive, with the company signing 10 new contracts worth a minimum of A$407 million and renewing six (out of six) contracts worth A$141 million at higher transaction rates.

Perhaps most impressively of all, the EBIT margin improved by 90 basis points to 74.9% in FY26.

It’s not cheap, but the Pro Medicus share price has dropped around 50% in the past year, making the ASX share much more attractive.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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 Life360. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.