The Commonwealth Bank of Australia (ASX: CBA) share price is once again pushing to a yearly high, but the Mantra Group Ltd (ASX: MTR) share price is down 34% in 12 months.
Is the CBA share price expensive?
According to the 16 analysts surveyed by The Wall Street Journal, the consensus recommendation is a 'hold' rating on CBA shares with an average price target of around $83.40. I use analyst price targets only to get a sense of what 'the market' is thinking, but in this case, I tend to agree with the consensus. It's a hold in my book, too.
Indeed, at the current CBA share price over $86, shares in Australia's biggest bank trade at a premium valuation to its peers, such as Westpac Banking Corp (ASX: WBC), and the broader market.
For my money, I think there are better opportunities on the market right now.
1 dividend share on my watchlist
One such ASX dividend share is Mantra Group, Australia's second-largest owner and operator of hotels and resorts. Its brands include Mantra, Peppers and BreakFree.
Mantra shares have dropped 34% over the past 12 months despite the company increasing profits and dividends to shareholders. The selloff also comes at a time when Australia is expected to benefit from an influx of overseas tourists, especially from Asia.
One of the risks facing Mantra is the rise of Airbnb, the room-sharing service. As Mantra makes a big part of its profits from booking and servicing independently-run hotels and resorts, the new booking service could disrupt the industry and the company.
However, there is every chance that the market has overdone the selloff and shares of Mantra are compelling value.
Indeed, I think the company's 4.1% fully franked dividend is very tempting at these levels. Then, there is the speculation of a takeover offer, which could provide an upside surprise. Finally, Mantra offers long-term growth potential.
Foolish takeaway
Commonwealth Bank is a great company, but its shares are too expensive to buy today, in my opinion. At $70, CBA shares would be a much more compelling proposition. But until then there are other great shares on the ASX.
