It's been a tough month for these rivalling ASX tech stocks.
Hub24 Ltd (ASX: HUB) and Netwealth Group Ltd (ASX: NWL) have slipped 12% and 15% respectively.
But zoom out, and the bigger picture hasn't changed. Australia's superannuation pool keeps growing. Advisers are consolidating platforms. And both companies are winning market share.
So, which one comes out on top right now?
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Hub24: The growth rocket
This $7 billion ASX tech stock continues to impress.
Its 1H FY26 result was packed with momentum. Net inflows hit a record $10.7 billion. Revenue climbed 26% to $245.9 million. Even better, underlying net profit surged around 60% as scale kicked in.
Funds under administration reached $152.3 billion. And the company lifted its interim dividend by 50%.
That's serious growth.
But the real story is structural. Hub24 is benefiting from rising adviser adoption. More than 5,200 advisers now use the platform. And the shift toward platform monogamy — where advisers consolidate onto one provider — is playing right into its hands.
This is a business gaining share in a growing market.
The downside? Valuation.
The ASX fintech stock has had a huge run and trades on premium multiples. That leaves little room for disappointment. Fee pressure and competition from legacy players upgrading their platforms are also risks.
Still, analysts remain bullish. The team at Macquarie Group Ltd (ASX: MQG) recently upgraded the ASX tech stock to an outperform rating with a reduced price target of $92.25. That's a bit below the average 12-month price target of roughly $112.00, which points to a 39% upside at the time of writing.
Netwealth: The steady performer
Netwealth offers a slightly different story.
Its 1H FY26 result also impressed. Platform revenue rose 25%, and funds under administration hit a record $125.6 billion.
Growth remains strong.
But what really sets Netwealth apart is profitability. Its recurring fee model, high adviser retention, and sticky client base support stable margins and predictable cash flow. That's gold for long-term investors.
The company also increased its interim dividend by around 20%, reinforcing its appeal as a reliable compounder.
Risks? Similar to Hub24.
Competition is intense. Fee pressure is always a threat. And staying ahead in platform technology requires constant investment.
Still, Netwealth tends to trade at a more conservative valuation. It's not as explosive, but it's consistent.
Trading View data show that most brokers see the ASX tech stock as a buy or even a strong buy. They have set the average 12-month price target at $28.49, suggesting around 34% upside.
Foolish Takeaway
Both Hub24 and Netwealth are riding powerful tailwinds. They sit at the centre of Australia's platform shift, a space dominated by a handful of strong players.
Hub24 looks like the high-growth rocket. Strong inflows. Expanding margins. Rapid momentum.
Netwealth feels like the steady compounder. Profitable. Predictable. Built on sticky relationships.
Which is better? It depends on your style.
If you want faster growth and are comfortable with higher valuation risk, Hub24 stands out. If you prefer stability, recurring income, and a slightly more conservative profile, Netwealth may be the smarter pick.
Either way, both look well placed for the long term.
