Commonwealth Bank of Australia (ASX: CBA) might be one of the most popular shares on the ASX, but popularity doesn't always make a stock a good buy.
At today's share price, CBA looks expensive by almost any measure, trading at a significant premium to its banking peers and well above its historical valuation range.
In addition, while it remains a high-quality business, its growth outlook appears subdued. With earnings largely tied to the domestic economy and interest rate movements, it is hard to see where the next big leg of expansion will come from.
For investors thinking long term, I believe there are better opportunities elsewhere, and in stocks with scalable business models, global ambitions, and structural tailwinds. Two that stand out to me are listed below.
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Pro Medicus Ltd (ASX: PME)
Pro Medicus provides medical imaging software to hospitals and health networks across the United States, Europe, and Australia. Its flagship platform, Visage 7, allows doctors to view and analyse high-resolution medical images quickly and efficiently. This is a capability that has become critical in modern diagnostics.
A key attraction is its business model. It earns recurring revenue through long-term contracts with major healthcare systems, generating high margins, and strong cash flow with minimal capital requirements. Each new contract typically adds incremental profit, meaning growth can scale rapidly.
The good news is that its outlook is as positive as ever. With the global healthcare industry increasingly digitising and imaging volumes rising, the company's sales pipeline remains very strong according to management. It is also expanding into other ologies, giving it an even larger total addressable market. This is in contrast to CBA, which faces limited growth prospects in a mature banking sector.
Morgan Stanley is recommending Pro Medicus to clients. It has an overweight rating and $350.00 price target on its shares.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX stock that could be better than CBA is Temple & Webster. It has become Australia's leading online furniture and homewares retailer.
Online penetration in Australia's furniture market is still relatively low compared to other developed economies. In fact, as of FY 2025, it had only captured 2.7% of the market. This gives Temple & Webster plenty of room to grow as consumers continue shifting their spending habits online. The company is also expanding its offering beyond home furniture, moving into home improvement to capture a larger slice of household spending.
Macquarie believes that this trend can continue. As a result, it recently put an outperform rating and $31.30 price target on its shares.
