CSL vs Commonwealth Bank of Australia shares: which ASX giant deserves a spot in your SMSF?

When thinking about which blue-chip shares to add to my SMSF this month, CSL Ltd (ASX: CSL) and Commonwealth Bank of Australia (ASX: CBA) both stand out. CSL is a global healthcare leader, while CBA is Australia’s biggest bank by market cap. Both have a strong track record and loyal followings, but they play different roles in a portfolio. With their size, resilience, and regular dividends, it’s no surprise many investors are weighing up CSL vs Commonwealth Bank shares. Here’s how I’d compare them right now.

The case for CSL

CSL is one of the world’s leading biotech companies, born and bred in Australia, but with a truly global presence. CSL’s core businesses span plasma products, vaccines, and treatments for rare and serious diseases, supported by a vast plasma collection network and innovation across blood therapies, vaccines, and iron deficiency treatments. CSL operates in over 40 countries and is recognised for tackling complex health challenges.

Looking at its fundamentals:

• Market cap sits at $87.33 billion, putting it high among ASX healthcare heavyweights.
• Its P/E ratio is 18.12, not particularly stretched for a company with global reach and research heft.
• The dividend yield is 2.27%, with recent dividends offering a dollar value of $4.05 per share but notably, with no franking credits.

One part I can’t ignore: recent earnings per share sits at -5.350, which looks odd next to CSL’s positive P/E ratio. This likely means the reported P/E ratio is based on an alternative earnings measure, such as adjusted or forward earnings.

CSL’s long dividend history shows steady, growing payments, but without franking, which impacts after-tax yield for SMSF investors wanting tax-effective income.

The case for Commonwealth Bank of Australia

Commonwealth Bank of Australia, simply known as CommBank, is arguably the most iconic financial institution on the ASX. From everyday banking through to lending, wealth, and insurance, it’s woven into the fabric of Australian finance. CBA operates not just in Australia, but also in New Zealand, Asia, the UK, and the US.

Key fundamentals that stand out:

• A market cap of $251.64 billion makes it the largest listed company in Australia by some distance.
• The P/E ratio sits at 23.38. For a mature financial giant, this is relatively elevated and suggests investors are paying a premium for its market dominance and stability.
• The dividend yield is 3.31%, fully franked. That’s an attractive proposition for anyone in the zero or low-tax-rate environment of an SMSF.

CBA’s dividends have been both reliable and rising, with the latest full-year payout at $5.05 per share, again fully franked. Unlike CSL, the EPS figure of 6.517 aligns with the positive P/E ratio. This consistency is comforting for long-term, income-focused investors.

Valuation comparison

There are some clear differences in how each company is valued and what income they provide:

Metric	CSL	Commonwealth Bank
Market Cap	$87.33 billion	$251.64 billion
P/E Ratio	18.12	23.38
Dividend Yield	2.27% (unfranked)	3.31% (fully franked)
Dividend per share	$4.05	$5.05
Franking on Latest Dividend	0%	100%

As previously mentioned, CSL’s reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the negative EPS figure shown, which is why they may appear inconsistent.

CBA’s dividend has a clear after-tax edge for SMSFs thanks to full franking. On the other hand, CSL’s lower P/E ratio suggests it’s cheaper relative to its earnings (at least on the measure reported), but the negative EPS brings the quality of those earnings into question at this instant. CBA’s higher P/E could reflect investors’ hunger for defensive yield in a volatile world, but it does mean you’re paying up for peace of mind.

Recent share price momentum

Comparing recent share price performance up to:

• CSL Ltd closed at $181.99, caping off a 1.85% gain for the day. The company has delivered a year-to-date return of 5.8%.
• Commonwealth Bank closed at $150.37, losing 1.32% for the day. Its year-to-date return is -2.0%—so it’s underperformed CSL in 2026 so far.

Both stocks have delivered multi-year capital growth, but CSL has the upper hand in recent momentum.

Which is the better buy?

If I were making a decision for my SMSF this month, my pick would be Commonwealth Bank of Australia. Here’s why: the fully franked yield of 3.3% is a stand-out, delivering excellent after-tax income for SMSFs. While the share price has lagged so far this year, CBA’s consistency, scale, and defensive earnings give me comfort as a core portfolio anchor. Even though CBA trades on a higher P/E, I think that reflects its robust profits and the premium investors place on bank stability.

CSL is a phenomenal company with strong long-term growth prospects and global reach. However, its current negative EPS and unfranked dividends take the shine off for me, especially compared to a fully franked, higher-yielding payout.

So, for a reliable, tax-effective SMSF addition in October 2026, my vote goes to Commonwealth Bank—but I’d keep watching CSL for any signs of earnings turnaround or changes in dividend policy.

The post CSL vs CBA: Which ASX share is best for SMSFs? 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 CSL. The Motley Fool Australia has recommended CSL. 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.

Starting your investing journey can be exciting, but deciding what to buy first isn’t always easy when there are hundreds of shares and exchange traded funds (ETFs) to choose from.

Thankfully, you don’t need to identify the next star stock to start building wealth.

Here are three ASX ETFs that could be worth considering for beginners now and in 2027.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

One of the biggest challenges for new investors is working out which companies will be successful over the next decade.

And let’s face it, even professional investors regularly get that wrong.

That’s why the Vanguard MSCI Index International Shares ETF could be a great place to start.

Instead of trying to pick a handful of winning stocks, this fund gives investors a stake in more than 1,000 companies across developed markets outside Australia.

That includes some of the biggest names in technology, healthcare, financial services, and consumer goods.

It also means you’re not relying on the Australian economy to deliver all your returns.

For beginners who want to start investing and gradually build their wealth over many years, that’s a strong proposition.

Betashares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF that could be worth considering is the Betashares Global Cybersecurity ETF.

Think about how much of your everyday life now takes place online. Banking, shopping, working, communicating, and even accessing healthcare increasingly involve digital services.

All that activity creates opportunities for cybercriminals, which is why businesses and governments are spending heavily on protecting their systems and data.

The Betashares Global Cybersecurity ETF allows investors to gain exposure to companies providing that protection. These businesses help prevent cyberattacks, secure networks, protect cloud systems, and detect threats before they cause serious damage.

This is a more specialised investment than a broad market ETF, so its performance could be more volatile. Nevertheless, for beginners interested in technology and its future, it could be an exciting fund to consider.

Betashares Australian Quality ETF (ASX: AQLT)

A final ASX ETF for beginners to look at is the Betashares Australian Quality ETF.

When people first start investing, it can be tempting to buy shares in companies they recognise. But being a household name doesn’t necessarily mean a business is a great investment.

That’s where this ETF takes an interesting approach. It looks beyond company size and focuses on Australian businesses with strong profitability, healthy balance sheets, and relatively stable earnings.

The idea is to favour financially stronger companies that may be better placed to handle difficult economic conditions and continue growing over time.

It also offers something different from a traditional Australian index fund, where the biggest banks and mining companies can dominate the portfolio.

For beginners who want exposure to local shares but prefer an investment strategy built around business quality, the Betashares Australian Quality ETF could be worth a closer look.

The post 3 excellent ASX ETFs for beginners in 2027 appeared first on The Motley Fool Australia.

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• 25% per annum: Is the BetaShares Cybersecurity ETF (HACK) a buy today?
• VGS vs V500: Which Vanguard ETF would I buy?
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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 Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

West African Resources Ltd (ASX: WAF) released its quarterly gold production figures this week, prompting the analyst team at Macquarie to run the ruler over the numbers.

The broker has maintained its outperform rating on West African shares and is predicting more share price upside, along with a healthy dividend yield.

I’ll get to the specifics of those later. First, let’s look at the company’s September quarter production.

Record quarter of gold production

West African Resources said in a statement to the ASX that it had produced 127,950 ounces of gold from its Sanbrado and Kiaka gold mines in Burkina Faso during the quarter, and had sold 135,245 ounces at US$4240 per ounce.

The company also confirmed it was on track to achieve its annual guidance of 430,000 to 490,000 ounces of gold.

West African Resources said it had received approval from the Burkina Faso Government for the M5 South underground extension at Sanbrado.

The company added:

M5 South underground development activities have commenced, and stoping activities are now scheduled to start in early H2 2027. There is flexibility within the overall Sanbrado mine plan and this delayed start is therefore expected to have minimal impact on 2027 gold production.

West African Executive Chair Richard Hyde said the record quarter maintained the company’s production run rate at more than 500,000 ounces per year.

Shares still looking like good value

Macquarie said in its new research note on the company that the third-quarter production was 11% higher than consensus estimates.

This was driven by a 15% lift in tonnage processed at Kiaka, with mined material also up 13% quarter on quarter.

Sanbrado, on the other hand, missed production expectations by a small amount, Macquarie said.

The broker added:

Barring any material disruptions, WAF should comfortably meet its production targets, particularly if improved access to explosives continues. We are likely to see improved all-in sustaining costs this quarter, given stronger sales (135koz, +22% quarter on quarter) offsetting the increase in mined and milled tonnage.

Macquarie increased its earnings per share estimates for West African Resources by 7% for this year, and upgraded its forecasts from CY27 to CY30 by 1%.

The broker added:

We maintain our Outperform recommendation for WAF, with lowered risk to CY27 production from receipt of the Sanbrado underground mine plan.

Macquarie maintained its $4 price target for West African Resources shares, compared with $3.61 at the time of writing.

If achieved, this would constitute a 10.8% return.

Macquarie is forecasting a 7.4% dividend yield this calendar year, falling to 4.9% next year, then rising to 5.4%.

West African Resources is valued at $4.01 billion.

The post Up nearly 20% over a year, can West African Resources shares go even higher? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• West African Resources delivers record Q3 gold output, on track for 2026 targets
• Downgrade alert! 5 ASX 200 shares downgraded by experts this week
• 5 things to watch on the ASX 200 on Thursday

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