Stocks● Neutral
Woolworths vs Flight Centre: Which ASX stock offers better value?
Woolworths offers a 2.9% dividend yield and 300% debt-to-equity, while Flight Centre shows 90% revenue growth and 11.9% ROE. Which ASX stock is the better investment in 2026?
Continue with
Two of Australia's best-known companies, Woolworths and Flight Centre, present very different investment cases heading into 2026. The choice between them comes down to what a buyer values: stability and income, or growth and recovery.
Woolworths, the supermarket giant, posted a debt-to-equity ratio of 300.2% in its FY24 results. That means the company carries more debt than equity, a level that adds risk. For a mature business, the return on equity of 1.9% is low. Woolworths is generating just under two cents of profit for every dollar of shareholder equity. The company's 5-year average dividend yield sits at 2.9% a year, with fully franked payouts that attract income-focused investors.
Flight Centre has a different shape. The travel agency swung from a net loss of $433 million to a profit of $140 million over the past three years. Revenue climbed at an annual rate of 89.8% over that period, reaching $2.7 billion in FY24. Return on equity came in at 11.9%, a figure above the 10% threshold often used to assess whether a company is earning enough on its capital.