CSL vs Pro Medicus: Which ASX200 Stock Reflects Better Value in 2025?

June 17, 2025 01:33 PM AEST | By Team Kalkine Media

Google News:

CSL vs Pro Medicus: Which ASX200 Stock Reflects Better Value in 2025? — Image source: shutterstock

Recent News

Australia Share Market: Renewable Energy Stocks Driving ASX 200 Transf...

ADNOC’s Interest in Santos Stirs Regulatory Attention on ASX 200 and A...

Mizuho remains bullish on data centers; DLR remains top pick

Macquarie Group’s Role in the Expanding Australia Share Market

Highlights

CSL down 15% YTD, PME nearing 52-week high

PME shows strong growth and high ROE

CSL backed by steady returns and dividend reliability

As the healthcare sector continues to draw attention from market participants, two ASX200 stocks—CSL Ltd (CSL) and Pro Medicus Ltd (PME)—are standing out for very different reasons in 2025. With CSL experiencing a notable pullback and PME approaching a record high, investors are closely evaluating their relative value and future potential.

CSL (ASX:CSL): Strength in Stability

CSL Ltd, a global biotechnology leader, operates through its three core divisions: CSL Behring, CSL Seqirus, and CSL Vifor. These units provide crucial therapies, including plasma-derived treatments, influenza vaccines, and nephrology solutions. CSL has historically enjoyed a reputation for being a defensive asset within the healthcare space, particularly appealing to those who value stability and long-term income.

In FY24, CSL reported a debt/equity ratio of 62.8%, reflecting a conservative capital structure. The company’s average dividend yield over the last five years stands at 1.5%, which adds a layer of consistency for income-focused portfolios. With a reported return on equity (ROE) of 14.6% in FY24, CSL comfortably clears the threshold expected of mature businesses, further reinforcing its standing among ASX200 stocks.

Pro Medicus (ASX:PME): Growth-Driven Momentum

Pro Medicus Ltd, on the other hand, represents a different kind of opportunity. Founded in 1983, PME has carved out a niche in the global radiology IT market, providing cutting-edge software for hospitals and imaging centers. Its flagship Visage platform enables radiologists to review complex imaging data remotely, enhancing the speed and efficiency of diagnostic decisions.

The growth story here is compelling. PME has increased its revenue by 33.4% annually over the past three years, reaching $162 million in FY24. Net profit also surged from $31 million to $83 million during that period. Perhaps most impressively, the company boasts an ROE of 50.7%, indicating highly efficient capital use and strong profitability.

Value Perspective in 2025

While CSL might appeal to those looking for exposure to established global healthcare trends and resilient cash flows, PME offers the allure of high growth, technological innovation, and superior returns on capital. With CSL’s share price down 15% year-to-date and PME hovering just 8.2% off its 52-week high, both companies merit consideration for inclusion in a diversified healthcare-focused watchlist.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.