Kalkine: Exploring the Strength of TLS and QAN: 2 ASX Stocks Worth Watching

June 12, 2025 03:26 PM AEST | By Team Kalkine Media

Kalkine: Exploring the Strength of TLS and QAN: 2 ASX Stocks Worth Watching — Image source: Shutterstock

Telstra Group Ltd (ASX:TLS): Backed by Scale and Network Reach

Once a state-owned enterprise, Telstra has grown to become Australia’s leading telecommunications provider. With more than 22.5 million retail mobile accounts reported in 2023, the company plays a foundational role in the country’s connectivity landscape. Its service portfolio includes mobile, broadband, digital media, and data & IP offerings. Additionally, Telstra operates globally in over 20 countries, delivering enterprise and government services.

A key strength lies in its unmatched coverage — TLS services reach 99.6% of the Australian population, with its 5G network covering over 85%. This extensive footprint sets it apart in a competitive telecom market.

From a valuation perspective, Telstra’s dividend yield stands at around 3.71%, exceeding its 5-year average of 3.62%. This suggests relative strength in its shareholder returns. Notably, its most recent dividend payout was higher than the 3-year average, indicating upward momentum in distributions.

Qantas Airways Ltd (ASX:QAN): Flight Path Shows Rebound Potential

Founded in 1921, Qantas is Australia's flagship airline with the country’s largest fleet, broadest destination coverage, and most international routes. The airline serves both domestic and international passengers, manages freight logistics, and operates a highly active loyalty program through Frequent Flyer services.

Compared to its historical valuation, QAN shares currently trade at a price-to-sales ratio of 0.72x — lower than its 5-year average of 0.88x. This could indicate that the stock remains relatively inexpensive in the context of its revenue base, possibly presenting a favorable setup for long-term investors monitoring turnaround or recovery trends in aviation.

A Comparative Outlook

Both companies serve vastly different sectors but share traits that make them noteworthy. Telstra's established market position and dividend consistency appeal to those seeking reliable corporate performance. In contrast, Qantas' positioning within a cyclical industry and its current valuation offer a different type of potential — more oriented towards business recovery and future earnings growth.

Together, (TLS) and (QAN) reflect two distinct investment narratives on the ASX — one built on infrastructure and consistent income, and the other on travel rebound and market revaluation.

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