Cochlear vs Pro Medicus shares: Which ASX healthcare giant deserves a spot in your portfolio?

If you’re sizing up Cochlear Ltd (ASX: COH) against Pro Medicus Ltd (ASX: PME), you’re comparing two homegrown titans of Australian healthcare tech. Both companies are recognised leaders globally, but their share prices have taken a hit from recent peaks. So, which one stands out for long-term investors today?

The case for Cochlear

Cochlear is the world’s top cochlear implant maker, holding about half of the global market. Founded in 1983, it commercialised technology pioneered by Dr Graeme Clark, and now supplies devices that are the standard of care for children with severe hearing loss and an increasing number of seniors. Most of its revenue comes from overseas, especially the US and Europe.

• A few notable numbers jump out for Cochlear:
• It has a $8.92 billion market cap, reflecting strong global scale.
• Recently raised dividends: its payout climbed from $1.75 per share (final, 2023) to $2.15 (final, 2025 and 2026), with 85% franking.
• The company offers a solid 3.15% dividend yield, much higher than many healthcare peers.

The case for Pro Medicus

Pro Medicus specialises in cutting-edge medical imaging and radiology IT for hospitals and medical clinics worldwide. Its product suite includes systems for image archiving, reporting, appointments, billing, and workflow optimisation, with a strong presence in US hospital networks.

• Key highlights for Pro Medicus:
• It’s a heavyweight, with a $17.28 billion market cap—nearly double Cochlear’s.
• Its dividend yield is much more modest at 0.42%, but fully franked at 100%.
• Pro Medicus’ dividends are growing fast: from 12 cents per share (final, 2022) up to 37 cents (final, 2026), suggesting growing profits and cash flow for shareholders.

Valuation comparison

Here’s how these two measure up on the basics:

Metric	Cochlear (COH)	Pro Medicus (PME)
Market Cap	$8.92b	$17.28b
P/E Ratio	60.59	65.22
Dividend Yield	3.15%	0.42%
EPS	$2.252	$2.536
Franking	85%	100%

Cochlear trades at a slightly lower P/E but offers a much higher dividend yield, while Pro Medicus is bigger, with marginally higher earnings per share and full franking.

Recent share price performance

Based on prices as of 15 September 2026 (not live data), both have seen sharp slides from their recent highs, but the scale differs:

• Cochlear’s year-to-date return is a sobering -46.83%.
• Pro Medicus is less bruised, down -24.80% for the year.

Looking at the last two weeks, both stocks have been volatile. Cochlear slipped from around $140–$145 to $136.43, while Pro Medicus dropped from above $190 to $165.45 over the same period. Neither is escaping the market’s negativity, but the percentage drawdown has been much steeper for Cochlear.

Which is the better buy?

If I had to choose, my pick would be Pro Medicus. Here’s why: While both shares look expensive by P/E and have fallen hard from their peaks, Pro Medicus has weathered the storm better and shows faster recent growth in earnings and dividends. Its fully franked dividends are on a rapid upward trajectory, and the company’s bigger global footprint (especially in the US hospital market) suggests more room for upside if conditions improve.

Cochlear is terrific for yield hunters, with a higher dividend yield and solid franking, but its aggressive price fall and slightly lower growth rate leave me wanting more momentum. Both businesses are quality names, and neither is cheap, but given how Pro Medicus has held up better and seems to have more earnings power right now, I’d lean toward Pro Medicus for future upside—even if it means accepting a lower current yield.

The post Cochlear vs Pro Medicus: Which beaten-down ASX healthcare share is the better buy today? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares tipped by experts to jump 30% to 62%
• 2 ASX shares I’d buy before they return to their 52-week highs
• Here are the top 10 ASX 200 shares today
• 9 ASX 200 shares earning strengthened buy ratings this week
• EchoIQ shares just crashed 48%. What happens now?

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 Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Cochlear and Pro Medicus. 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.

“Is this an AI bubble?”

It’s a question being asked more frequently as share prices rise, optimism grows and investors become increasingly excited about artificial intelligence.

And fair enough, too.

We’ve seen this movie before. A genuinely transformative technology appears. Investors imagine the possibilities. Capital pours in. Share prices rise. And, eventually, enthusiasm gets ahead of reality.

The dot-com boom is the obvious comparison. The internet really did change the world, just as its champions predicted. But that didn’t stop investors losing fortunes when the bubble burst.

So, is history repeating?

Maybe.

But maybe not.

There’s no rule that says rapidly rising share prices must fall. Nor that excitement must end in disaster. Sometimes businesses grow into apparently expensive valuations. Sometimes the optimists are right.

And AI is already producing real products, real revenue and real productivity gains. Some of today’s leading companies are immensely profitable, rather than hopeful start-ups with little more than a web address and a breathless business plan.

That doesn’t mean their shares are cheap. It doesn’t mean every AI-related investment will succeed. And it certainly doesn’t mean prices can’t fall.

It simply means we should resist the temptation to confidently predict what happens next.

(It’s possible AI continues its rise, and the losers are those businesses most exposed to that disruption!)

A better approach?

Prepare, don’t predict.

Use today’s enthusiasm – and the possibility that it ends – as a prompt to check what you actually own.

Not just AI, though.

Everything.

Because tough times tend to reveal what the good times hide.

When share prices are climbing, almost every investment seems smart. The ‘rising tide lifts all boats’.

(That phrase apparently goes back at least to the 1600s – a reminder that while technology advances, there really is nothing new under the sun!)

It’s easy to get caught up in the story… and to convince ourselves that it’s skill, not luck.

It’s only when conditions change that the differences become obvious.

Consider retail.

A good retailer can have a tough year. We might reduce our spending and costs might rise. 

As a result, sales can slow and profits can fall.

But short-term troubles don’t necessarily make it a bad business.

The important questions are whether customers still value what it sells, whether it is taking or losing market share, whether its stores remain productive and whether management can sensibly navigate the downturn.

Because a healthy retailer can emerge from a difficult period in a stronger competitive position, particularly if weaker rivals close stores, cut investment or… disappear altogether.

A structurally challenged retailer is different, of course. Customers may not want its products, or might prefer shopping at the competition. Margins might be permanently shrinking. A cyclical recovery won’t necessarily rescue a business whose competitive position has deteriorated.

Here’s the thing: the share price might fall in both cases. But they’re not the same business.

Your job is to know which one you own.

Then there’s debt.

Borrowing can make a good business look even better when times are favourable. It can fund expansion, lift margins and improve returns on equity. Things that are otherwise hallmarks of a successful business.

But banks don’t care whether the economy is strong or weak. The interest bill still needs to be paid. Loans still need to be refinanced.

And lenders tend to be least generous when borrowers need them most.

That’s when the difference between a strong balance sheet and a fragile one becomes painfully clear.

A financially strong company can keep investing through a downturn. It might acquire a competitor, open new locations or buy back shares at attractive prices.

A heavily indebted company usually doesn’t have those choices. It can be forced to cut investment, sell assets, sack staff, or raise capital at exactly the wrong time.

We learned that during COVID.

The time to think about these things is before things get messy.

What things? Ask yourself some of these questions:

Does the company generate positive cash flow?

Does it earn attractive returns on capital?

Does it have a strong balance sheet?

Do customers genuinely value its products?

Does it have an advantage competitors will struggle to copy or beat?

And does it have room to grow?

Then consider what you’re paying. A wonderful business can still be a poor investment if its share price assumes everything will go perfectly.

The thing is, those fundamentals don’t seem to matter when prices are rising. They get ignored when everyone is focused on growth, and optimism, and when ‘what can go wrong?’ is a rhetorical question, not a real one.

And then… things go wrong.

The economy stutters. Rates go up. Investors get nervous. Prices fall.

It can be hard to remember that when the highly leveraged, high risk companies are flying high. 

It can be tempting to abandon disciplined investing and join the party.

Until the music stops.

And when it does, it’ll be too late to realise you own a collection of exciting stories, ephemeral profits, overleveraged balance sheets, and ‘hopes and dreams’.

You’ll realise you should have prioritised quality and value over high-risk and high hopes.

No-one can know what will happen, when. 

No-one.

And when you really understand that, you stop playing Russian roulette.

You make sure you’re prepared.

The time to make sure? Before the bad times come.

When will that be? No-one knows.

That’s why you should be prepared.

Fool on!

The post Do this before the bubble bursts appeared first on The Motley Fool Australia.

More reading

• Netwealth shares could be set to rise 60% in the next 12 months – Expert
• IperionX validates GenX™ titanium production: Major efficiency gains
• Vicinity Centres: 2026 Capability Showcase highlights Chadstone and Chatswood Chase
• The average superannuation balance at age 66 in Australia, versus what you actually need to retire
• Cochlear vs Pro Medicus: Which beaten-down ASX healthcare share is the better buy today?

Motley Fool contributor Scott Phillips 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.

Telix Pharmaceuticals Ltd (ASX: TLX) shares have been on fire this week.

Despite the market weakness, the radiopharmaceuticals company’s shares have rocketed around 14% higher.

The catalyst for this has been news that the company’s Pixclara product has been granted US FDA approval.

So, should you be buying Telix shares as well because of this big news? Let’s find out what Bell Potter thinks.

What is the broker saying?

Bell Potter was pleased with the Pixclara news, highlighting that Telix is entering a new era with revenues set to jump in FY 2027. It said:

The FDA’s approval of the new drug application for Pixclara (floretyrosine F18 aka FET-PET) heralds a new era for TLX, expanding its revenue base beyond the PSMA imaging. In fact, TLX now has multiple revenue streams inclusive of it is isotope manufacturing business, with FY27 revenues now likely to expand well beyond the US$1bn mark .

Speaking about the product, the broker adds:

The work now commences to execute on the commercialisation strategy commencing with the establishment of reimbursement and the appointment of radiopharmaceutical networks for distribution.

We expect strong demand from the outset as FET-PET is the standard of care for the management of gliomas outside of the US. The drug has been available to a limited extent under the expanded access program in the US and there is a highly concentrated user group amongst radiation oncologists. The premium reimbursement relative to reimbursement on most other nuclear medicine exams will help prioritise FET-PET for machine time.

Should you invest?

According to the note, in response to the news, Bell Potter upgraded Telix shares to a buy rating with a $19.00 price target.

Based on its current share price of $17.75, this implies potential upside of 7% for investors.

Commenting on its investment thesis, it said:

First revenues expected 2Q27. Revenues will be modest in the initial instance and not material to overall revenue growth in the short term. Despite this, the Pixclara approval is an important catalyst, particularly if the label expands to the larger brain metastases indication. We had previously included revenues from Pixclara in forecasts, hence no changes to earnings required. We upgrade our recommendation from Hold to Buy, PT $19.00.

Overal, the broker appears to see potential for Telix shares to keep climbing in the near term. Though, the easy gains appear to be behind them.

The post Are Telix shares a buy after its big US FDA news? appeared first on The Motley Fool Australia.

More reading

• These 2 ASX healthcare shares just jumped up to 15%. Here’s why
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Domino’s Pizza, Telix Pharmaceuticals, Westfarmers shares
• Here are the top 10 ASX 200 shares today
• Why are Telix Pharmaceuticals shares charging higher today?

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 positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.