
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%âso 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 Bankâbut 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.

