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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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.

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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.

The All Ordinaries Index (ASX: XAO) closed around 1% lower on Tuesday afternoon. The index is also now down 2% for the year-to-date. Now many have their eye focused on which ASX shares could climb even higher over the next 12 months. Here are three ASX shares that brokers think could return up to 122% over the next year.

Meteoric Resources Ltd (ASX: MEI)

Meteoric Resources released its highly anticipated Definitive Feasibility Study (DFS) for its Caldeira Rare Earths project in July. The study included confirmation of a 151 million tonne (Mt) ore reserve grading 3,524ppm TREO and an impressive life of mine (LOM) post-tax NPV of US$847 million at spot prices.

The project has already secured a Preliminary Environmental Licence, with the construction permit (LI) expected by the end of 2026. Meteoric has signed non-binding offtake agreements with major players in South Korea, Canada, and North America and is in advanced funding talks with several government credit agencies.

The company’s next steps involve obtaining the Installation Licence and finalising project funding to move toward a final investment decision and project construction. 

Last month, Meteoric also announced that its shares will begin trading on the US OTCQB Venture Market under the ticker METOF, broadening access for North American investors and supporting future growth.

Experts seem confident the business could boom over the next 12 months. Market Index data shows that all brokers have a strong buy rating on the ASX rare earths shares. The 38 cent target price implies a potential 122% upside at the time of writing.

Generation Development Group Ltd (ASX: GDG)

Generation Development Group is a diversified financial services company focused on investment and retirement products.

The company’s shares have consistently tumbled lower over the past 12 months after spiking to an all-time high in October last year.

It looks like the share price decline through 2026 is part of a reset after the shares rocketed around 107% through the first three quarters of the 2025 calendar year. Many investors took profits after the shares rallied strongly over a short period.

But the company’s FY26 results were strong operationally. Generation Development Group posted record funds under management last month, up 37% to $46.5 billion. 

Meanwhile its underlying NPAT increased 21% to $40.7 million for FY26. Group revenue also increased 23% to $178.7 million.

Going forward, the group said it is well-placed to benefit from strong structural tailwinds across superannuation, retirement, and managed account markets in FY27. Management expects continued FUM growth, supported by adviser adoption and stable product revenue margins.

Brokers are bullish too. Market Index data shows that all brokers agree on a strong buy rating on the ASX shares. The $5.62 average target price implies about 90% upside at the time of writing.

Judo Capital Holdings Ltd (ASX: JDO)

Judo was one of the strongest-performing bank shares on the ASX earlier this year. However, the ASX bank shares crashed 43% in late June after it downgraded its profit guidance for FY26. Since then, it has struggled to recover. 

Even a stronger-than-expected FY26 result in mid-August hasn’t been enough to renew investor confidence. 

Judo reported a 29% increase in NPAT and a 34% increase in profit before tax, at the top end of its revised guidance range. 

The company also expects FY27 profit before tax to be between $210 million and $220 million, driven by growth and operating leverage. That would translate to a 30% increase.

The sell-off earlier this year seems overdone to me, and the bank appears to be performing better than the market expected.

Market Index data shows the majority of brokers have a strong buy rating on the ASX shares. The $1.51 average target price implies a potential upside of around 50%, at the time of writing.

The post Brokers tip these 3 ASX shares to climb between 50% and 122% in the next 12 months appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 Generation Development Group. The Motley Fool has a “https://www.fool.com.au/fool-com-au-disclosure-policy/”>disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.