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BHP vs Codan shares: Which strong performer is the better buy today?
When two ASX 200 shares have both delivered impressive returns lately, it can be tough to choose between them. BHP Group Ltd (ASX: BHP) and Codan Ltd (ASX: CDA) are both strong performers in 2026, but offer totally different business profiles for Aussie investors. Today, I'm comparing BHP vs Codan shares to see which stands out better right now, looking at their fundamentals, dividend potential, momentum, and more.
The case for BHP
BHP Group is a global resources titan, mining everything from iron ore to copper and nickel. It's one of the largest companies on the ASX. BHP is also famous for its fully franked dividends and its ability to ride the boom-bust cycles of global commodities. According to its most recent public description, the business consolidated its listing recently and operates worldwide.
BHP's standout fundamentals:
- Market cap: $306.37 billion – BHP dwarfs most other ASX names, highlighting its defensive size and industry standing.
- Dividend yield: 3.98%, fully franked – reliable income, with 100% franking making it especially attractive for many Aussie investors.
- YTD return: 39.0% – a big jump for a miner of this size, showing investors' confidence in the current commodity cycle.
BHP's dividend track record is impressive, regularly rewarding shareholders with fully franked income and the occasional special dividend. However, the miner's profits and share price can swing sharply depending on iron ore and metals prices.
The case for Codan
Codan is an Australian electronics designer and manufacturer, specialising in communications, metal detection, and mining technology. Its products find customers across government, military, and commercial sectors globally, with particular strength in North America. According to its company profile, Codan has a diversified international footprint with manufacturing in Australia and Malaysia, and support operations spanning several countries.
Codan's most interesting fundamentals:
- Market cap: $12.00 billion – that's small compared to BHP, but not for a tech-focused midcap.
- P/E ratio: 67.18 – suggests investors are paying up for perceived growth, but this is high even for tech stocks.
- YTD return: 128.3% – a stunning run, more than tripling BHP's YTD gain in 2026.
Codan pays fully franked dividends, though at a much lower running yield than BHP (0.75%). Its growth profile and global market presence stand out, but income seekers may shrug at the low dividend yield.
Valuation comparison
BHP and Codan sit in different sectors, so direct valuation comparisons need context. That said, there are some stark differences:
| Metric | BHP | Codan |
|---|---|---|
| Market Cap | $306.37 billion | $12.00 billion |
| P/E Ratio | 22.09 | 67.18 |
| Dividend Yield | 3.98% (100% franked) | 0.75% (100% franked) |
| Earnings Per Share | 1.932 | 0.959 |
| Dividend Per Share | 2.42 | 0.49 |
Note: Codan's P/E ratio is unusually high – even for a growth stock – while BHP's valuation is more moderate for a major miner. Dividend hunters will see a clear win for BHP on current yield.
Recent share price momentum
Comparing recent share price performance up to 30 September 2026:
- BHP Group: closed at $60.82, up 39.0% YTD. The last week saw BHP stay fairly steady, with mild day-to-day moves, and no big volatility spikes.
- Codan: closed at $65.83, up a massive 128.3% YTD. Notably, Codan gained 23.9% in a single day (29 September), showing some serious momentum – but with that often comes higher risk and price swings.
Which is the better buy?
Looking at BHP vs Codan shares, I'm genuinely impressed by both. BHP brings scale, reliability, fully franked income and a more accessible P/E ratio in a highly cyclical sector. Codan, meanwhile, is a clear market darling among growth hunters after more than doubling in 2026 and boasting a diversified, global high-tech business.
But, at current prices, my pick would be BHP. Here's why: Codan's massive P/E and wafer-thin dividend make me nervous about how much good news is already factored in. While Codan could continue to outperform if it delivers on growth, that sort of valuation demands everything (and more) goes right.
BHP isn't cheap compared to its own history, but pays close to four percent yield, fully franked, on a much larger and more resilient resource base. For my money, the combo of income, scale, and a reasonable P/E makes BHP the more balanced opportunity between these two strong performers today.
