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Highlights
- ZIP revenue grows rapidly, with improving profits
- SCG delivers consistent dividends with strong tenant stability
- ASX200 investors weigh growth vs income strategies
As investors continue scanning the ASX200 landscape for value opportunities, two contrasting companies—Zip Co Ltd (ZIP) and Scentre Group (SCG)—are drawing attention for their respective 2025 trajectories. While one represents a tech-driven growth model, the other stands on the foundation of premium retail real estate.
ZIP (ASX:ZIP) – The Fintech Innovator
Zip Co Ltd is a global financial technology player focused on providing interest-free instalment solutions through its buy-now-pay-later (BNPL) model. Since its founding in 2013, the company has scaled quickly, serving over 6 million customers across multiple geographies and partnering with more than 79,000 merchants.
ZIP’s expansion into the US market through its acquisition of Quadpay has broadened its footprint, pushing global relevance. From 2021 to FY24, ZIP posted impressive annual revenue growth of 75.7%, reaching $868 million. Moreover, the company turned a significant corner in profitability, swinging from a net loss of $678 million to a net profit of $6 million. The latest return on equity (ROE) sits at 1.8%, reflecting early signs of financial maturity.
Despite a 3.4% drop in share price since the start of 2025, the company’s evolving profitability and global positioning keep it in focus within the ASX200 growth segment.
SCG (ASX:SCG) – The Real Estate Anchor
Scentre Group operates a network of 42 Westfield-branded shopping centres in Australia and New Zealand. Valued at over $34 billion, this property portfolio is strategically located in high-traffic trade zones and boasts an occupancy rate exceeding 99%.
SCG centres draw more than 500 million annual visits, supported by long-term leasing arrangements across retail, dining, and entertainment categories. This operational consistency supports the company’s income reliability.
In calendar year 2023, SCG reported a debt-to-equity ratio of 87.3%, signalling a balanced capital structure. While its ROE came in at 1.0%—below the double-digit benchmark typically sought in mature businesses—the group has historically delivered an average dividend yield of 4.8% since 2020. The stock is currently trading about 7.2% below its 52-week high, catching the eye of income-focused market participants.
Both ZIP and SCG offer distinctive value within the ASX200. While ZIP appeals to those interested in scalable tech growth, SCG aligns more with those seeking dependable income through real estate-backed assets. With each stock highlighting different investment characteristics—growth versus stability—they may suit different strategic priorities in 2025's evolving market landscape.
