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Cochlear vs Pro Medicus shares: Which ASX healthcare giant deserves a spot in your portfolio?
If you're sizing up Cochlear Ltd (ASX: COH) against Pro Medicus Ltd (ASX: PME), you're comparing two homegrown titans of Australian healthcare tech. Both companies are recognised leaders globally, but their share prices have taken a hit from recent peaks. So, which one stands out for long-term investors today?
The case for Cochlear
Cochlear is the world's top cochlear implant maker, holding about half of the global market. Founded in 1983, it commercialised technology pioneered by Dr Graeme Clark, and now supplies devices that are the standard of care for children with severe hearing loss and an increasing number of seniors. Most of its revenue comes from overseas, especially the US and Europe.
- A few notable numbers jump out for Cochlear:
- It has a $8.92 billion market cap, reflecting strong global scale.
- Recently raised dividends: its payout climbed from $1.75 per share (final, 2023) to $2.15 (final, 2025 and 2026), with 85% franking.
- The company offers a solid 3.15% dividend yield, much higher than many healthcare peers.
The case for Pro Medicus
Pro Medicus specialises in cutting-edge medical imaging and radiology IT for hospitals and medical clinics worldwide. Its product suite includes systems for image archiving, reporting, appointments, billing, and workflow optimisation, with a strong presence in US hospital networks.
- Key highlights for Pro Medicus:
- It's a heavyweight, with a $17.28 billion market cap—nearly double Cochlear's.
- Its dividend yield is much more modest at 0.42%, but fully franked at 100%.
- Pro Medicus' dividends are growing fast: from 12 cents per share (final, 2022) up to 37 cents (final, 2026), suggesting growing profits and cash flow for shareholders.
Valuation comparison
Here's how these two measure up on the basics:
| Metric | Cochlear (COH) | Pro Medicus (PME) |
|---|---|---|
| Market Cap | $8.92b | $17.28b |
| P/E Ratio | 60.59 | 65.22 |
| Dividend Yield | 3.15% | 0.42% |
| EPS | $2.252 | $2.536 |
| Franking | 85% | 100% |
Cochlear trades at a slightly lower P/E but offers a much higher dividend yield, while Pro Medicus is bigger, with marginally higher earnings per share and full franking.
Recent share price performance
Based on prices as of 15 September 2026 (not live data), both have seen sharp slides from their recent highs, but the scale differs:
- Cochlear's year-to-date return is a sobering -46.83%.
- Pro Medicus is less bruised, down -24.80% for the year.
Looking at the last two weeks, both stocks have been volatile. Cochlear slipped from around $140–$145 to $136.43, while Pro Medicus dropped from above $190 to $165.45 over the same period. Neither is escaping the market's negativity, but the percentage drawdown has been much steeper for Cochlear.
Which is the better buy?
If I had to choose, my pick would be Pro Medicus. Here's why: While both shares look expensive by P/E and have fallen hard from their peaks, Pro Medicus has weathered the storm better and shows faster recent growth in earnings and dividends. Its fully franked dividends are on a rapid upward trajectory, and the company's bigger global footprint (especially in the US hospital market) suggests more room for upside if conditions improve.
Cochlear is terrific for yield hunters, with a higher dividend yield and solid franking, but its aggressive price fall and slightly lower growth rate leave me wanting more momentum. Both businesses are quality names, and neither is cheap, but given how Pro Medicus has held up better and seems to have more earnings power right now, I'd lean toward Pro Medicus for future upside—even if it means accepting a lower current yield.
