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Droneshield vs BHP shares: Which ASX stock could help build long-term wealth?
If you're a 40-year-old looking to build serious long-term wealth, you might be tossing up between innovative tech companies and household names with reliable track records. Droneshield Ltd (ASX: DRO) and BHP Group Ltd (ASX: BHP) both trade on the ASX but represent very different roads to financial freedom. So, should you go with a small but fast-evolving Aussie tech play or back a global mining giant? Let's dig in.
The case for Droneshield
Droneshield is a homegrown defence technology company that specialises in artificial-intelligence-powered hardware and software for drone detection and mitigation. Its cutting-edge products—like DroneGun Tactical and RfPatrol—are aimed at protecting critical infrastructure, governments, the military, airports and even commercial venues from unwanted drone intrusion. While it operates mainly in Australia, the US, and the UK, Droneshield's client base appears to be growing rapidly within the security and defence world.
Looking at the fundamentals, Droneshield now carries a market cap of $1.38 billion. But its investment story is mixed: the P/E ratio comes in at a sky-high 433.75, while its earnings per share (EPS) is negative at -0.033. The company doesn't currently pay a dividend, so those seeking income will need to look elsewhere. Its returns this year haven't been flash either, with a year-to-date (YTD) return of -50.2%.
The case for BHP
BHP Group Ltd (ASX: BHP), formerly known as BHP Billiton, is the heavyweight champion of the ASX and one of the world's biggest mining outfits. With a market cap of $302.51 billion, BHP digs up and ships out commodities like iron ore, copper, coal, and nickel to global markets. The business is highly diversified across geographies and resources, and—while like all miners it's exposed to swings in commodity prices—BHP's operational history, size, and global scale offer an enviable level of stability.
The numbers show why BHP is a favourite for long-term investors: its P/E ratio is 21.76, arguably in the middle of the range for large Australian stocks. The company boasts a significant fully franked dividend yield of 4.00%, sweetened for Aussies by that 100% franking. Its EPS is $1.932 per share and it dishes out dividends regularly, with a healthy track record shown in its payment history. Shareholders have been rewarded so far in 2026 with a YTD return of 38.2%.
Valuation comparison
There are stark differences in valuation and returns between these two:
| Metric | Droneshield | BHP |
|---|---|---|
| Market Cap | $1.38 billion | $302.51 billion |
| P/E Ratio | 433.75 | 21.76 |
| Dividend Yield | 0.00% | 4.00% (100% franked) |
| Earnings Per Share | -0.033 | 1.932 |
| YTD Return | -50.2% | 38.2% |
Note: Droneshield Ltd's reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.
BHP delivers strong profitability, attractive franked dividends, and reasonable value relative to its established earnings. Droneshield, on the other hand, is currently loss-making, with no dividend and a valuation driven by future growth expectations rather than present profits.
Recent share price momentum
Comparing recent share price performance up to 20 October 2026:
- As of 20 October 2026, Droneshield closed at $1.49, down 2.6% for the day and has seen heavy volatility and losses over 2026, reflected in its -50.2% YTD return.
- As of 20 October 2026, BHP closed at $59.50, falling 1.6% on the day but standing tall with a 38.2% YTD gain.
These figures show BHP has enjoyed positive price momentum recently, while Droneshield's shares have struggled.
Which is the better buy?
Looking at the story these numbers tell, my pick for a 40-year-old aiming to build long-term wealth is BHP. Here's why: BHP dominates with its consistent profitability, substantial (and fully franked) dividend yield, and robust gains this year. Its diversified business and global scale provide a foundation for long-term compounding—even if its fortunes can still swing with commodity cycles.
Droneshield is an exciting tech innovator with global aspirations, but it's not yet profitable and is highly speculative. While it might deliver big growth if things go its way, the negative earnings, zero dividend, and sharp recent share price losses make it a riskier proposition for growing wealth sustainably over time.
If you're after regular income, stability, and a track record of rewarding shareholders—even through market cycles—my pick would be BHP.If you're chasing explosive growth stories and can tolerate volatility and risk, Droneshield is the more daring bet, but it wouldn't be my first stop for long-term wealth at age 40.
