When it comes to long-term investing, quality ASX shares tend to rise to the top. Businesses with strong competitive advantages, consistent earnings, and the ability to reinvest for growth often deliver the best returns over time.
While markets can be unpredictable in the short term, high-quality companies can keep compounding for years.
Here are two ASX shares that could be worth considering for long-term investors.
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REA Group Ltd (ASX: REA)
REA Group is a prime example of an ASX share that could consistently compound over years. It operates Australia's leading online property marketplace and has built a dominant position that is incredibly difficult to disrupt. Its platform is deeply embedded in the real estate ecosystem, making it the go-to destination for buyers, sellers, and agents.
That dominance translates into pricing power. Even during softer property cycles, REA has historically grown revenue through premium listings and value-added services. This ASX share is not just exposed to housing activity; it actively monetises it.
The business has also continued to evolve. By adding new tools, data insights, and digital services, REA is strengthening its offering and deepening customer engagement. This reinforces its competitive moat and supports long-term growth.
With high margins, a leading market position, and structural exposure to housing demand, REA appears well placed to keep delivering over the next decade. Analysts at Bell Potter Securities recently placed a buy rating on the stock with a $211 price target, implying potential upside of around 21% from current levels.
TechnologyOne Ltd (ASX: TNE)
Another high-quality name to watch is TechnologyOne. The enterprise software company has been a standout performer over the years, even after experiencing a pullback through late 2025 and early 2026.
The $10 billion ASX tech share provides software solutions to government agencies, universities, and large organisations. Its transition to a cloud-based software-as-a-service (SaaS) model has transformed the business, driving predictable and growing recurring revenue.
Its latest financial performance highlights that strength. The company delivered 18% revenue growth to $554.6 million and a 19% increase in profit before tax to $181.5 million. Consistency at that level is a key reason investors have been drawn to the stock.
One of its biggest advantages is customer stickiness. Once its software is embedded into an organisation's operations, switching providers becomes costly and complex. That leads to high retention rates and supports long-term earnings growth.
There's also an international growth angle. TechnologyOne has been expanding in the UK, which could provide an additional runway for growth in the years ahead.
With strong margins, recurring revenue, and a scalable platform, TechnologyOne has the characteristics of a business that can continue compounding over the long term.
Most analysts see the ASX share as a buy or strong buy. The average 12-month price target sits around $32, which points to a 6% upside. The most bullish price target is $38.70, 27% above the current share price.
