REA Group vs CAR Group shares: Which is better for income?

Comparing REA Group Ltd (ASX: REA) and CAR Group Ltd (ASX: CAR) might seem like splitting hairs at first—both are digital advertising powerhouses offering online marketplaces in property and automotive, respectively. But for income-focused investors, there are some clear differences between REA and CAR shares worth digging into. If you’re searching for franked dividends, capital growth or just a reliable yield, here’s how these two stack up.

The case for REA Group

REA Group runs the dominant realestate.com.au platform in Australia, a go-to site for property buyers, sellers, and renters. The company also has exposure to complementary businesses such as mortgage broking and property data, adding some diversification to its earnings.

Looking at the fundamentals, REA is a $20.84 billion business with a P/E ratio of 30.98, making it a premium-priced market leader. Its 1.88% dividend yield won’t knock your socks off, but it’s underpinned by 100% franking—perfect for Aussie investors who can use those tax credits. REA’s earnings per share (EPS) sits at $5.106, and dividend history shows steady growth over recent years, with payments fully franked as far back as the records go.

REA’s business is solid, especially with its dominant market position in online property listings and services. According to its most recent public description, it’s got a stronghold over the residential and commercial property websites sector in Australia and growing reach overseas.

The case for CAR Group

CAR Group, most familiar to Aussies as the owner of carsales.com.au, is a leader in online automotive classifieds. But CAR has expanded beyond Australian shores, with stakes in major auto marketplaces across South Korea, the US, Chile and Brazil. This international reach gives it multiple growth levers that don’t depend solely on the local market.

Fundamentally, CAR Group has a $9.09 billion market cap—smaller than REA but still substantial. Its P/E ratio is 29.01, a touch lower than REA’s, and its dividend yield is a standout at 3.58%. The shares come with only partial franking (recent dividends ranged from 30–50%), so the after-tax yield for Australian shareholders isn’t quite as attractive as a fully-franked payout, but the grossed-up yield still compares favourably. The latest annual dividend per share is $0.87, and the company has lifted dividends steadily in recent years.

CAR Group’s diverse earnings base across multiple countries and digital marketplaces adds some resilience in case the Australian car or job market slows.

Valuation comparison

Here’s a side-by-side of the key numbers:

Metric	REA Group	CAR Group
Market Cap	$20.84b	$9.09b
P/E Ratio	30.98	29.01
Dividend Yield	1.88% (100% franked)	3.58% (30–50% franked)
Dividend per Share	$3.46	$0.87
Earnings Yield	3.23%	3.45%
Year-to-date Return	-12.11%	-19.12%

REA is pricier on most measures, but CAR delivers a higher headline yield. However, REA’s fully franked dividends make it more tax effective for some income-driven investors.

Recent share price performance

Both companies have seen share price declines in 2026 so far, but REA has held up a bit better.

REA’s share price history (18 August–17 September 2026) shows a drop from $178.62 (on 18 August) to $159.22 (17 September): a fall of about 11%.

CAR Group’s price history (same 18 August–17 September 2026 period) starts at $29.10 and ends at $23.97, a decline of roughly 18%.

So over this snapshot, both have tracked down with the broader market, but CAR Group has seen a steeper fall.

Which is the better buy?

For income investors, I’m leaning towards CAR Group. While REA Group’s fully franked dividends are gold for some—especially for retirees or those keen to maximise franked income—the yield is modest at 1.88%. With CAR now offering a 3.58% yield (albeit with only partial franking), the gross cash return is much stronger.

That said, if you place a high value on franking credits, or you want the perceived safety that comes with REA’s virtual monopoly on real estate listings (and you don’t require much income), REA is hard to beat in terms of stability and after-tax benefit.

But if income is truly the goal and you can live with 30–50% franking, my pick would be CAR Group for its significantly higher yield and solid record of dividend growth.

The post REA Group vs CAR Group: Which is best for income investors? 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 recommended CAR Group Ltd. 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.

ASX 200 healthcare shares led the 11 market sectors last week with a 3.76% gain over the five trading days.

The broader S&P/ASX 200 Index (ASX: XJO) slipped 0.11% over the week to 8,731.2 points on Friday.

The market was volatile on increased bets of another interest rate hike due to persistently high inflation.

The market is pricing an 82% chance that the Reserve Bank will lift rates by another 0.25% at the end of the month.

Last week, the US Fed raised rates for the first time in three years, and Japan also increased rates to a 30-year high.

Elevated oil prices due to the US-Iran conflict continue to contribute to stubborn inflation worldwide.

Last week, eight of the 11 market sectors finished in the red.

Let’s review.

Healthcare led the market sectors last week

Healthcare is continuing its rapid rebound following a 29% slump over the 12 months to early June.

The S&P/ASX 200 Health Care Index (ASX: XHJ) hit a 9-year low on 3 June.

Healthcare shares have ripped 43% since then compared to a 0.6% fall for the ASX 200.

The CSL Ltd (ASX: CSL) share price popped 5.08% to $175.59 last week, and it’s up 90% since 3 June. 

Resmed CDI (ASX: RMD) shares rose 5.15% to $31.87, and are 23% higher since 3 June. 

Pro Medicus Ltd (ASX: PME) shares jumped 3.18% to $169.57 on Friday, and are up 6% since 3 June. 

The Ramsay Health Care Ltd (ASX: RHC) share price lifted 3.44% to $55.39, and is up 52% since 3 June. 

Sonic Healthcare Ltd (ASX: SHL) shares edged 1.26% higher to $19.24, and are up 2% since 3 June.

Telix Pharmaceuticals Ltd (ASX: TLX) shares jumped 13.91% to $17.85 on Friday, and are up 46% since 3 June.

The 4DMedical Ltd (ASX: 4DX) share price leapt 28.27% to $4.31, and is up 14% since 3 June. 

Chemist warehouse owner Sigma Healthcare Ltd (ASX: SIG) bucked the trend last week.

Sigma Healthcare shares fell 3.04% to $2.55, and are 12% lower since 3 June. 

The Cochlear Ltd (ASX: COH) share price also fell 0.18% to $133.90 last week.

Cochlear shares have recovered 41% since 3 June. 

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Healthcare (ASX: XHJ)	3.76%
Utilities (ASX: XUJ)	0.5%
Communication (ASX: XTJ)	0.03%
Industrials (ASX: XNJ)	(0.02%)
Consumer Discretionary (ASX: XDJ)	(0.14%)
Financials (ASX: XFJ)	(0.21%)
Materials (ASX: XMJ)	(0.32%)
Consumer Staples (ASX: XSJ)	(0.74%)
Information Technology (ASX: XIJ)	(0.81%)
Energy (ASX: XEJ)	(1.29%)
A-REIT (ASX: XPJ)	(1.89%)

The post ASX 200 healthcare shares lead a weaker market amid 82% chance of a rate hike appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 CSL, Cochlear, ResMed, and Telix Pharmaceuticals. 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 ResMed. The Motley Fool Australia has recommended CSL, Cochlear, Pro Medicus, Sonic Healthcare, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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:

Guzman Y Gomez Ltd (ASX: GYG)

According to a note out of Morgans, its analysts have upgraded this quick service restaurant operator’s shares to a buy rating with a $31.00 price target. The broker has been looking at recent industry data and notes that consumer spending has been soft, particularly at the low income side of the market. And with interest rates potentially heading higher from here, the broker concedes that the industry outlook is challenging. Nevertheless, it feels that this is more than priced into Guzman Y Gomez shares at current levels following recent weakness. As a result, the broker feels now could be an opportune time to invest. The Guzman Y Gomez share price ended the week at $25.61.

Lovisa Holdings Ltd (ASX: LOV)

A note out of Bell Potter reveals that its analysts have upgraded this fashion jewellery retailer’s shares to a buy rating with a $27.00 price target. Bell Potter has been looking ahead to the company’s annual general meeting in November. The broker highlights its belief that Lovisa will experience relatively easier comparables and retain most of the growth reported at the start of FY 2027 when it provides its trading update. It notes that this will be supported by the fact that around 80% of revenue occurs outside Australia. The exit of a key competitor should also provide further support and offset risks in the local market. In light of this and recent share price weakness, the broker sees the current valuation as attractive. The Lovisa share price was fetching $22.62 at Friday’s close.

Megaport Ltd (ASX: MP1)

Analysts at Citi have retained their buy rating and $24.60 price target on this network solutions company’s shares. According to the note, the broker believes Megaport is well-placed to continue benefiting from increased spending on artificial intelligence inference. In fact, Citi believes the only risk is executing on its strong compute pipeline. And with its strong balance sheet and attractive contract economics, the broker believes Megaport is positioned to pursue further contract wins. Though, it concedes that significant contracts could require another equity raising to fund. The Megaport share price was trading at $18.54 at the end of the week.

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

More reading

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• Lovisa vs Temple & Webster: Which ASX retailer is the better growth stock today?
• Nextdc vs Megaport: Which ASX tech growth share comes out on top?

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Lovisa and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Megaport. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.