Stock comparison
CBA vs Westpac Shares: Which Looks The Better Investment?
Data as of 2026-04-23.
CBA
Commonwealth Bank of Australia
AU Financial Services
WBC
Westpac Banking Corporation
AU Financial Services
| Key facts | CBA | WBC |
|---|---|---|
| Price | A$175.04 | A$39.40 |
| Market cap | 293.9B | 135.0B |
| Sector | Financial Services | Financial Services |
| Industry | Banks – Diversified | Banks – Diversified |
| P/E | 28.31 | 19.84 |
| PEG | 3.49 | 1.25 |
| EPS | 6.21 | 1.99 |
| Dividend yield | 2.76% | 3.80% |
| Beta | 0.85 | 0.80 |
| Revenue growth | 6.60% | 5.30% |
| Profit margin | 36.35% | 31.49% |
| 52W range | A$145.04 – A$186.59 | A$29.70 – A$43.32 |
| 50-day SMA | A$175.24 | A$41.00 |
| 200-day SMA | A$167.14 | A$38.61 |
| Price vs 50D SMA | -0.11% | -3.90% |
| Price vs 200D SMA | 4.72% | 2.04% |
| Target price | A$126.14 | A$35.02 |
| Target vs last price | -27.94% from last price | -11.12% from last price |
The Australian market is dominated by the “Big Four Banks”, but among the entrants; Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), Westpac Banking Corporation (WBC), and ANZ Banking Group (ANZ), we are going to take two from the pack to compare here.
They are both core financial stocks, both pay franked dividends, and both are deeply exposed to the Australian economy. CBA is the premium-quality bank the market keeps paying up for, while WBC is the cheaper bank with a more traditional value-and-income pitch.
CBA’s latest half-year result for the six months to 31 December 2025 showed cash NPAT up 6%, an interim dividend of A$2.35 per share, and continued strength in its home lending and business banking franchises. Westpac’s latest completed official result is still its FY2025 full-year result, with 1H26 results scheduled for 5 May 2026; FY2025 showed statutory net profit of A$7.0 billion, a 12.53% CET1 ratio, and a fully franked full-year ordinary dividend of 153 cents per share.
Maybe the best way to think about it is that CBA is the better bank, but not obviously the better share at any price. Westpac is not the stronger franchise, but it is easier to justify if you care about valuation and income. So the real question for you is whether you want to pay up for the highest-quality major bank, or whether you would rather buy the cheaper bank and back gradual improvement.
On the raw numbers, CBA looks stronger almost everywhere except valuation and yield and that is the trade off as you are paying materially more for CBA’s quality. Westpac gives you the cheaper entry point and the higher current income, but the operating profile is weaker.
How Do CBA and WBC Recent Financials Stack Up?
If you want the bank that the market trusts most, it is still CBA. Its 1H26 result reflected what investors have come to expect: strong balance-sheet settings, disciplined execution, lower arrears in the home lending portfolio, and continued momentum across retail and business banking. CBA reported cash NPAT of A$5.445 billion, a fully franked interim dividend of A$2.35, and said its home lending book remained well secured, with most customers still ahead on scheduled repayments.
If you want the cheaper bank, it is Westpac. Its FY2025 result showed the bank is still in the middle of a long simplification and productivity journey. Net profit and returns are respectable, capital is strong, and business lending growth was solid, but the bank is still spending heavily on UNITE and broader transformation. Westpac said FY2025 loans increased 6% to A$851.9 billion, including 11% growth in business loans, while its return on average tangible ordinary equity excluding notable items was 10.97%.
The case for CBA is that you are buying the best-positioned major bank in Australia, with the latest results showing higher cash earnings, an improved return on equity, and continued strength in core businesses.
The case for Westpac is much more about risk/reward. You are not buying the market’s favourite bank with this one, you would be buying a large, systemically important bank with a solid deposit and lending franchise, a strong capital base, and a share price that does not demand perfection. The appeal is that the bank still looks like a bank stock rather than a premium asset with tech-like pricing, and although Westpac’s return profile is lower than CBA’s, its valuation is easier to defend.
Dividend and income comparison
If you are a yield-focused investor, Westpac is the better fit today, with CBA’s 1H26 interim dividend at A$2.35 per share, fully franked, while Westpac’s FY2025 ordinary dividends totalled 153 cents per share, fully franked, including a 77-cent final dividend. The current data shows a dividend yield above 3.8% for Westpac versus 2.76% for CBA, which doesn’t automatically make Westpac the better investment, but if your starting point is income above all else, WBC has the edge.
Who is the better long-term investment
If you want your bank share to be the highest-confidence compounder, CBA is likely the better long-term fit. It has the stronger franchise, the stronger profitability, and the stronger investor trust. You may not love the price, but you can understand why the market keeps rating it highly.
If you want your bank shares to be the better value proposition, Westpac is the stronger candidate with a lower valuation, higher yield, and the expectations are much more moderate. You do not need Westpac to become the best bank in order to see growth, you just need it to keep improving and avoid major disappointment. Westpac’s own reporting shows it is trying to do exactly that through growth in business lending, tighter cost discipline, and the UNITE transformation program.
For most investors who care about risk/reward, though, Westpac may be the better investment at today’s prices. You are getting a lower multiple, a higher yield, and a bank that is still solidly capitalised. That does not make it the better business, it just makes it the more attractive setup if you do not want to overpay for certainty. If you have to choose just one, the choice for you comes down to whether you value quality more, or price more.
