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Woodside Energy vs Rio Tinto shares: Which ASX 200 giant looks better value?
Investors tossing up between Woodside Energy Group Ltd (ASX: WDS) and Rio Tinto Ltd (ASX: RIO) are looking at two titans of the Australian sharemarket, both mainstays of the ASX 200, but operating in very different sectors. With Woodside in oil and gas and Rio Tinto in global mining, both offer scale, dividends, and global reach, but their value story isn't the same. For anyone keen on dependable blue chips, "Woodside Energy vs Rio Tinto shares" is a classic ASX yardstick – so which looks better value today?
The case for Woodside Energy
Woodside Energy is Australia's largest independent oil and gas company and the nation's biggest operator of oil and gas production. With key assets both onshore and offshore in Australia and a growing international presence, Woodside recently cemented its size and scale with a major merger, bringing BHP's oil and gas portfolio under its umbrella. The business has a long ASX history, with its first shares hitting the boards back in 1971.
Looking at the fundamentals, three points stand out for Woodside:
- Dividend appeal: Woodside trades on a 5.11% dividend yield, which is fully franked. Over the past decade (and more), this company has consistently delivered strong, fully franked dividend payments, making it a core holding for many income investors.
- Valuation: Its P/E ratio sits at 13.94, with year-to-date return at a powerful 42.1% – a rare combination of value and recent momentum.
- Market scale: With a market cap just shy of $59 billion and 1.9 billion shares on issue, Woodside is a true heavyweight in the local resources space.
Woodside's fully franked interim dividend was $0.57 (paid 25 Sep 2026), keeping with its reputation for reliable cash returns, according to its most recent dividend payouts.
The case for Rio Tinto
Rio Tinto is one of the world's biggest diversified mining companies, with operations spanning iron ore, aluminium, copper, and even lithium. Headquartered in Australia but with a truly global footprint, Rio's history stretches back to 1873 and it's a familiar name for local and international investors alike. The company's ASX listing in 1962 marked the beginning of a long, often prosperous journey for patient shareholders.
Notable features for Rio Tinto right now include:
- Earnings strength: With an earnings per share (EPS) of 7.382 and a dividend per share of $6.63, Rio's scale translates into solid cashflow. The most recent interim dividend was $2.96 (paid 24 Sep 2026), fully franked.
- Valuation and yield: The P/E ratio is 15.86 – a slightly higher multiple than Woodside's – with a current dividend yield of 3.97%, fully franked.
- Market heft: At $60.55 billion market cap and 2.51 billion shares outstanding, Rio is among the absolute largest stocks on the ASX.
That said, Rio's year-to-date return is a more modest 18.2% compared to Woodside's near-rocket 42.1%.
Valuation comparison
Here's how the numbers stack up head-to-head on the key fundamentals worth highlighting:
| Metric | Woodside Energy | Rio Tinto |
|---|---|---|
| Market Capitalisation | $58.72 billion | $60.55 billion |
| P/E Ratio | 13.94 | 15.86 |
| Dividend Yield | 5.11% (100% franked) | 3.97% (100% franked) |
| Dividend per Share | $1.63 | $6.63 |
| Earnings per Share | 1.605 | 7.382 |
| Year-to-date Return | 42.1% | 18.2% |
Keep in mind sector norms for P/E can differ – mining giants often see a wider range of multiples versus energy – so I'm careful not to paint one as clearly "cheaper" than the other in an absolute sense. Both companies pay fully franked dividends.
Recent share price momentum
Comparing recent share price performance up to 1 October 2026.
- Woodside Energy: Closed at $30.89, down 3.1% for the day. Year-to-date gain is 42.1% as of 1 October 2026.
- Rio Tinto: Closed at $162.85, down 2.4% for the day. Year-to-date gain is 18.2% as of 1 October 2026.
Both stocks saw a dip on the most recent day, but Woodside's share price has shown much stronger upward momentum so far in 2026.
Which is the better buy?
Both Woodside Energy and Rio Tinto are market leaders in their fields, boasting size, stability, and strong dividend records. But on the value side, I'd lean toward Woodside Energy as the standout right now. What tips me over is the combination of a lower P/E ratio (relative to Rio), a significantly higher fully franked dividend yield, and much stronger recent share price performance so far in 2026. Woodside's ability to maintain a 5%+ yield on top of a 42% YTD return is a rare feat among large caps.
I also like the merger-driven growth story with BHP's former oil and gas assets now embedded in its portfolio, supporting both scale and cashflow diversity. Of course, resource shares can see swings depending on the commodities cycle, but as I see it today, Woodside looks better value for anyone weighing these two ASX giants side by side.
