Image source: Getty Images
Commonwealth Bank of Australia vs Washington H Soul Pattinson shares
If you're thinking about parking your money in a blue-chip bank or a diversified investment house, it's hard to look past Commonwealth Bank of Australia (ASX: CBA) and Washington H Soul Pattinson and Co Ltd (ASX: SOL) for different reasons. One's a household name with massive financial firepower, the other's an Aussie investment icon with fingers in a lot of pies. If I could only pick one to back with my own cash, here's how I'd break it down.
The case for Commonwealth Bank of Australia
Commonwealth Bank is Australia's largest bank and a true titan on the ASX. It operates across retail, business, and institutional banking, plus wealth management, insurance, and broking. CBA's brand is one of the most recognisable locally, offering a broad selection of financial services across Australia, New Zealand, and beyond, as highlighted in its company profile.
Looking at the numbers, three things stand out. First, it's a $249.83 billion giant by market cap, vastly larger than most ASX peers. Its current P/E ratio sits at 22.91, reflecting a premium to many other financials. The dividend yield comes in at 3.38% (fully franked), with $5.05 paid out per share over the last twelve months, and a long, consistent history of fully franked dividends. Its earnings per share are 6.517, lining up with its profile as a mature, profit-generating business.
For income investors, CBA's commitment to reliable, fully franked dividends – paid like clockwork over decades – is very hard to go past.
The case for Washington H Soul Pattinson and Co
Washington H Soul Pattinson, or Soul Patts for short, is an Australian investment house with a track record stretching back over a century. Today, it's best described as a diversified holding company – imagine it as a listed mini-conglomerate – with major positions in listed companies (like TPG Telecom and New Hope Corporation), private business holdings, emerging companies, property, resources, and more. Its stated aim is a blend of capital growth and steady, growing dividends.
On the numbers, Soul Patts is much smaller than CBA with a market cap of $17.62 billion. But its valuation paints an interesting picture: the P/E ratio is just 7.89 – much lower than CBA's – suggesting the market ascribes less growth or more risk here, but potentially also some value appeal. Earnings per share clock in at 5.876. The dividend yield is currently 1.03% (also fully franked), translating to $1.11 per share over the last twelve months. Its year-to-date return really pops out: up 26.2%. There's also been a recent merger with Brickworks Limited (now a subsidiary), further boosting its diversification.
Soul Patts appeals to those who want long-term capital growth with a diversified portfolio in one ticker, even if it pays a less generous dividend than the bank.
Valuation comparison
Here's how the headline numbers stack up:
| Commonwealth Bank | Washington H Soul Pattinson | |
|---|---|---|
| Market Cap | $249.83 billion | $17.62 billion |
| P/E Ratio | 22.91 | 7.89 |
| Dividend Yield | 3.38% (fully franked) | 1.03% (fully franked) |
| Earnings per Share (EPS) | 6.517 | 5.876 |
CBA's P/E is far higher than Soul Patts, which is typical for big banks, but that doesn't automatically make the bank "expensive" or Soul Patts "cheap" – they're in quite different sectors, so these ratios reflect varied business models and risk appetites. Both offer 100% franking on dividends, but CBA's yield is notably higher. If you're seeking dividends, CBA stands out; if you're seeking a lower P/E and possible value, Soul Patts may appeal.
Recent share price momentum
Let's see how they've moved recently, using closing prices as of 9 October 2026:
- Commonwealth Bank closed at $149.29, having slipped -3.9% year to date. Its price has been relatively steady, with small moves both up and down in recent weeks.
- Washington H Soul Pattinson closed at $46.38, up a strong 26.2% year to date. It's shown robust positive momentum, with most recent sessions edging higher.
Which is the better buy?
If I could only choose one, my pick would be Washington H Soul Pattinson. Here's why: despite its lower yield, Soul Patts is trading on a much more attractive P/E ratio and has delivered substantial share price growth this year (+26.2% YTD). Its structure gives me exposure to multiple sectors and companies under one roof, including large names like TPG Telecom and New Hope Corporation, as well as the newly added Brickworks. That diversification could help smooth the ride if the banking or resources sector wobbles.
CBA is an absolute bedrock for dividend hunters, with a yield over three times higher than Soul Patts, unwavering dividend payments, and unrivalled market presence. But with a P/E that's almost three times higher and lacklustre share price momentum (-3.9% YTD), I'm more drawn to Soul Patts' forward-looking mix of growth and value right now.
Both businesses are proven and resilient, so there's merit on each side. But forced to tip my money into one? I'd lean to Soul Patts for its recent performance, low valuation, and unique diversification.
