Woolworths Group Ltd (ASX: WOW) and Commonwealth Bank of Australia (ASX: CBA) shares have delivered markedly different returns over the past year.

On Tuesday, CBA shares were trading for $152.45 apiece. That sees the S&P/ASX 200 Index (ASX: XJO) bank stock down 9.7% in 12 months. Though those losses will have been modestly eased by the two fully franked dividends CommBank paid out over this period.

CBA stock trades on a 3.3% fully franked dividend yield.

Woolworths shareholders have enjoyed a much more profitable year.

Trading for $38.91 apiece on Tuesday, shares in the ASX 200 supermarket giant have gained 38.6% in 12 months. And that’s not including the passive income Woolies doled out to shareholders over the year.

Woolworths stock trades on a 2.5% fully franked dividend yield.

Looking ahead, however, Shaw and Partners’ James Bills believes that shareholders would do well to exit both ASX 200 stocks (courtesy of The Bull).

Here’s why.

CBA shares still trading at a premium

“In our view, the stock trades at a significant premium to domestic peers and on historical valuations,” Bills said.

CBA trades at a price to earnings (P/E) ratio of around 23.5 times, the highest of the big four ASX 200 bank stocks.

Bills added:

While the bank maintains a high-quality franchise and strong market position, earnings growth is expected to remain modest amid competitive lending conditions and regulatory pressures.

Summarising his sell recommendation on CBA shares, Bills said:

Recent Federal government initiatives aimed at increasing housing supply and improving affordability is likely to lead to intensifying competition across the mortgage market and place pressure on lending margins.

Current valuations leave limited scope for further earnings driven upside. Investors may wish to take profits and re-deploy capital into opportunities offering stronger risk-adjusted return potential.

Woolworths share price rally may have run out of puff

Along with CBA shares, Bills also expects that Woolworths shares will struggle to outperform over the coming months.

“The supermarket group has experienced a strong recovery in the past year, with the share price recently trading near the upper end of its historical range,” he noted.

“While the company remains high quality with a leading position in Australian food retailing, much of the recent improvement appears to be reflected in the WOW share price,” Bills said.

Summarising his sell recommendation on Woolworths shares, Bills concluded:

Earnings growth is expected to remain relatively steady rather than exceptional, limiting scope for further share price appreciation from current levels.

Following the recent rally, investors may consider taking profits before re-allocating capital to opportunities with stronger growth potential and a more attractive risk-reward profile.

The post Sell alert! Why this expert is calling time on Woolworths and CBA shares appeared first on The Motley Fool Australia.

More reading

• Worried about a downturn? 3 ASX shares and 3 ETFs built to weather it
• ASX 200 drops again as selling continues
• Down 12%: Are CBA shares a buy, sell or hold now?
• Woolworths vs Coles: Which supermarket giant is the better ASX buy?
• Buy, hold, sell: Echo IQ, James Hardie, Woolworths shares

Motley Fool contributor Bernd Struben 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.

Codan vs Droneshield shares: Which technology play is the stronger bet?

Many Aussie investors interested in emerging technology, defence, or high-growth markets find themselves comparing Codan Ltd (ASX: CDA) and Droneshield Ltd (ASX: DRO). Both companies operate globally, but their approaches, product lines, and recent fortunes are quite different. So, in a battle of Codan vs Droneshield shares, which one looks the better opportunity?

The case for Codan

Codan is a veteran Aussie tech manufacturer with a global footprint. It designs and builds electronics for communications, metal detection, and mining technology, serving government, military, and commercial clients. Through its brands—Codan Communications, Minelab, Minetec, and Defence Electronics—it supplies everything from metal detectors to secure radio systems. Codan’s engineering and support reach stretches from Adelaide to Canada, the US, Europe, and the Middle East, with most sales revenue coming from North America.

What stands out about Codan today? Firstly, its year-to-date return is a whopping 60.41%, signalling powerful share price momentum in 2026. Earnings per share sits at $0.705, with a fully franked dividend yield of 1.07%. It’s now capped at $8.15 billion, a hefty valuation reflecting its strong global customer base and solid reputation. While the dividend yield isn’t high, the payout is consistent and comes with full franking credits.

The case for Droneshield

Droneshield is an Aussie innovator focused squarely on counter-drone technology—a booming niche as drones become a security threat. Its AI-powered devices, like DroneGun Tactical and DroneSentry, are used to detect and neutralise suspicious drones for clients ranging from governments to airports and big venues. Droneshield’s operations span Australia, the US, and the UK, and its gear is increasingly vital for critical infrastructure protection.

But when it comes to fundamentals, Droneshield is still on a very different footing to Codan. Its market cap is $1.48 billion—much smaller—which reflects both its status as a newer company and the fact it’s still unprofitable, with negative earnings per share of -$0.033. It has no history of paying dividends. Perhaps most striking is this year’s share price dive: a 46.10% year-to-date decline for 2026, reflecting a sharp reversal in fortune after a strong run-up in the prior year.

Valuation comparison

Comparing key numbers, you quickly see a gulf in scale, profit, and price.

Metric	Codan (CDA)	Droneshield (DRO)
Market Cap	$8.15 billion	$1.48 billion
P/E Ratio	47.05	433.75
Dividend Yield	1.07% (fully franked)	0.00%
Earnings per Share	$0.705	-$0.033
Year to Date Return	+60.41%	-46.10%

Codan trades at a much lower P/E than Droneshield. Droneshield’s extremely high P/E—despite negative earnings—reflects expectations of future growth, but for now, the profit simply isn’t there. Only Codan pays a dividend, and at a fully franked rate, that’s a perk for income-focused investors.

Recent share price performance

Looking at the most recent share price history (as of mid-September 2026), Codan has been on a roll. Even with a few day-to-day dips, it’s up more than 60% year to date. Its shares reached $44.71 on 14 September 2026, after a strong rally through August.

Droneshield, on the other hand, has had a rough ride. It closed at $1.61 on 14 September 2026, which is down from earlier highs and represents a 46% fall for the year. While there have been some positive trading days in late August, September brought renewed volatility and downward moves.

Which is the better buy?

For me, the choice between Codan and Droneshield comes down to execution and proven growth. Droneshield has exciting technology and huge long-term potential, but right now the numbers are tough to swallow. Revenue growth may be happening, but the lack of profits, the enormous P/E ratio, and the sharp 2026 decline make it a high-risk punt.

Codan, by contrast, is profitable, rewarding shareholders with dividends, and growing sharply in its share price. With a much lower P/E—yet still reflecting optimism—a global business, and 100% franking, it ticks more boxes for a well-balanced portfolio. If I had to pick, my buy would be Codan. While Droneshield is a thrilling underdog, Codan’s combination of growth, profitability, and momentum makes it the standout today.

The post Codan vs Droneshield shares: Which is the better buy? appeared first on The Motley Fool Australia.

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• DroneShield shares have crashed 51% in a year. Here’s why I’d buy them today
• Are DroneShield shares a buy at their 52-week low?
• These are the 10 most shorted ASX shares
• $10,000 invested in DroneShield and Core Lithium shares 3 years ago is now worth…

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 DroneShield. 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.

The ASX share market doesn’t stay calm forever, and 2026 has been a reminder of that. With stretched valuations, slowing global growth and stubborn inflation all doing the rounds, more investors are looking to add some ballast to their portfolios.

Here are three defensive ASX shares and three ETFs worth a look.

Woolworths Group Ltd (ASX: WOW)

Supermarkets don’t stop trading in a downturn — people still need to eat. Woolworths’ dominant market share in the Australian supermarket landscape has long held it in good stead even during tough economic conditions.

And the market has noticed: the ASX share is up 33% year to date. Even as households trade down to cheaper essentials, Woolworths tends to keep the lights on and the dividends flowing.

Ramsay Health Care Ltd (ASX: RHC)

Healthcare demand doesn’t switch off when the economy slows. Ramsay is one of the largest and well-established private healthcare providers, and elective surgery volumes plus global diagnostic demand tend to hold up regardless of the cycle.

It’s the kind of business people rely on whether markets are booming or busting. The ASX share is up an impressive 56% in 2026.

Suncorp Group Ltd (ASX: SUN)

Insurance is one of those products people keep paying for no matter what. Insurance demand tends to remain steady even in weaker economic conditions.

Suncorp hasn’t been a growth story over the past 12 months, down 5%, but that’s rather the point. This $21 billion ASX share is there to steady the ship, not chase the rally.

Vanguard Australian Shares Index ETF (ASX: VAS)

For broad, low-cost exposure with a defensive tilt, the Vanguard Australian Shares Index ETF has characteristics that make it more resilient than many global indices, leaning on Australia’s banks, resources and consumer staples sectors.

It’s a simple, set-and-forget way to add local stability to a ASX shares portfolio.

iShares Global Consumer Staples ETF (ASX: IXI)

If you want global exposure to businesses people buy from no matter the economic weather, this ETF is hard to beat. Its holdings include some of the most dependable companies on the planet, such as Walmart Inc (NASDAQ: WMT), and Coca-Cola Co (NYSE: KO).

These are businesses with strong brands, pricing power, and customer loyalty, making their earnings far more stable than companies tied to discretionary spending.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Cash is king in a downturn, and this fund is built around exactly that idea. It focuses on stocks with exceptional cash generation, holding global giants like Alphabet Inc (NASDAQ: GOOG) and Visa Inc (NYSE: V).

Two companies with the balance sheet strength to self-fund growth without leaning on debt when conditions get tough.

Foolish takeaway

None of these picks will make headlines for explosive growth, and that’s the whole point of defensive investing.

Pairing a couple of resilient ASX shares with a broad ETF or two can help smooth out the ride without forcing you to sit entirely on the sidelines.

As always, defensive doesn’t mean risk-free. It means being better positioned to weather the storm.

The post Worried about a downturn? 3 ASX shares and 3 ETFs built to weather it appeared first on The Motley Fool Australia.

More reading

• Woolworths vs Coles: Which supermarket giant is the better ASX buy?
• Buy, hold, sell: Echo IQ, James Hardie, Woolworths shares
• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
• Experts name CBA and these big-name ASX 200 shares as sells this week
• How to build a superannuation portfolio generating $50,000 a year

Motley Fool contributor Marc Van Dinther 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 Alphabet, Visa, and Walmart. The Motley Fool Australia has recommended Alphabet and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.