The value of technology company Codan Ltd (ASX: CDA) soared past $10 billion recently and just kept going, after it announced a large profit upgrade.

But the team at Canaccord Genuity argues that the company’s shares still represent good value, despite the strong run they’ve been on recently.

Drone warfare driving strong growth

Codan has two main divisions: military communications and metal detection. Both divisions have been performing well lately.

But it is the use of the company’s technology in unmanned systems, or drones, which is translating into very rapid revenue growth.

When announcing its upgrade, the company said it expected first-half revenue in its communications division to rise 20% from the orior year.

Codan added:

Demand from conflict regions is currently exceptionally strong, reflecting the proven performance and reliability of our technology in these contested environments. With this elevated demand, Codan expects revenue generated from conflict regions to represent approximately 50% of Communications segment revenue in H1 FY27 (vs. approximately 20% in the previous corresponding period). Codan now expects the Communications segment to deliver H1 FY27 revenue of between $400 million and $410 million. This compares to $221.8 million in the pcp and $506.2 million in full year FY26.  

Management said demand from conflict regions was difficult to predict over the full year, “and accordingly it is too early in the financial year to determine if demand and margin will continue at similar levels in H2 FY27.

The metal detection division (Minelab) was also performing well, driven by strong demand for its new GPZ8000 and Gold Monster 2000 detectors. This division is now expected to slightly exceed the revenue it generated in the second half of FY26.

In terms of group profit, Codan is expecting a net profit in excess of $160 million for the first half, compared to $71.2 million in the first half of FY26 and $175.2 million for the full year.

Broker says expect more to come

Canaccord Genuity said they believed Codan’s forecasts would turn out to be conservative.

They said:

We believe Codan is well placed to beat full year expectations, with management’s conservative second half conflict region assumptions likely to prove too cautious given no end in sight to conflicts such as Ukraine. While Codan trades on an FY27 P/E of 41x, its true forward multiple may prove well below this as further upgrades or consensus beats come through.

Canaccord Genuity said Minelab also remained a strong, high-margin business supported by elevated gold prices.

Canaccord Genuity does not publish share price targets for its top share picks.  

Codan is valued at $11.9 billion, at the time of writing.

The post Up more than 100% in a year, why Codan shares may still be cheap appeared first on The Motley Fool Australia.

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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 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.

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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• If I invest $10,000 in CBA shares today, what could they be worth in October 2027?

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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• How much do I need to retire on $110,000 a year at 65?

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.