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Codan vs Pro Medicus shares: which growth stock offers better value?
Keen on growth shares but not sure whether Codan Ltd (ASX: CDA) or Pro Medicus Ltd (ASX: PME) is the smarter buy? Both names have built reputations as high-performing Aussie tech businesses, but dig deeper and you'll quickly notice some big contrasts. Let's break down what sets Codan and Pro Medicus apart when it comes to value, growth, and recent momentum.
The case for Codan
Codan is a global technology player, best known for high-tech communications, metal detection, and mining solutions. Through segments like Codan Communications, Minelab, Minetec, and Defence Electronics, the company serves government, military, and commercial customers in dozens of countries. According to its company profile, Codan controls its own products end-to-end, with manufacturing plants in Australia and Malaysia, and a sales footprint concentrated in North America.
What stands out for Codan right now is just how quickly it's compounded shareholder value. Its year-to-date return sits at a jaw-dropping 73.85%, which is rare in any market. The company's P/E ratio is on the higher side at 51.03, suggesting it's priced as a growth stock with high expectations. A dividend yield of 0.99% (fully franked, no less) won't turn heads for income buffs, but it's at least ahead of most tech or high-growth names. And with a market cap of $8.86 billion, Codan is a sizeable mid-cap player with room to grow.
The case for Pro Medicus
Pro Medicus sits at the cutting edge of digital healthcare, supplying advanced radiology and medical imaging systems across the globe. Hospitals and specialists use its solutions for everything from clinic scheduling to storing and analysing gigantic medical images. As per its most recent public description, the majority of Pro Medicus's success story has played out in the US, where many prestigious hospitals have adopted its technology.
This is a genuine tech darling with a reputation for growth. But currently, it's sporting an even loftier P/E ratio of 65.19 — a premium reserved for companies where investors expect mammoth expansion. The market cap, at $17.68 billion, puts Pro Medicus in a different league to Codan. It does pay a dividend (0.42% yield, fully franked), so there's at least a nod to returning cash, but it's definitely a token amount. What's more, the company's shares are actually down year to date by 24.84%, a reminder that even the best growth stories can be hit by buyer fatigue or lofty expectations.
Valuation comparison
There are clear valuation and size gaps between the two. Here's a quick look at the most relevant numbers:
| Metric | Codan | Pro Medicus |
|---|---|---|
| Market Cap | $8.86 billion | $17.68 billion |
| P/E Ratio | 51.03 | 65.19 |
| Dividend Yield | 0.99% (100% franked) | 0.42% (100% franked) |
| Year To Date Return | +73.85% | -24.84% |
| Earnings per Share | 0.705 | 2.536 |
Codan looks much cheaper on P/E, yields more, and has sharply outperformed on share price this year. Pro Medicus, meanwhile, is the market's clear growth favourite over the long haul, but carries a heavier price tag and steeper expectations.
Recent share price performance
Let's take a look at how these stocks have fared in recent weeks.
Codan's share price moved from $43.48 on 19 August 2026 up to $48.59 on 17 September 2026, a gain of around 12%. There were a few volatile days — most notably, a 12.42% jump on 20 August — but the overall momentum stayed very strong.
Pro Medicus tells a very different story. Its shares fell from $198.85 on 19 August 2026 to $169.22 on 17 September 2026 — a drop of about 15%. The ride included a few sharp single-day rallies, including a massive 11.88% spike on 18 August. But the prevailing trend these past weeks has been downward.
Which is the better buy?
If I have to call it between Codan and Pro Medicus right now, I'd lean toward Codan as the better value growth pick. Codan's recent outperformance has been eye-catching, especially when set against Pro Medicus's pullback this year. The valuation gap is clear, with Codan's P/E notably lower and its dividend yield higher (while still fully franked).
Pro Medicus has enormous long-term potential and should remain high on the watchlist, but at a P/E over 65 and negative returns year to date, I think it's priced too rich for my liking just now — especially when Codan is delivering growth and market-beating returns today. For me, Codan ticks more of the right boxes for Aussie investors after a rare combination of momentum and value in the growth space.
