Highlights
As 2025 unfolds, REA Group Ltd (ASX:REA) and Qantas Airways Ltd (ASX:QAN) are demonstrating impressive performance, each marking significant growth in their respective sectors.
REA Group (ASX:REA), the operator behind Australia’s largest real estate platform, realestate.com.au, has seen a notable increase of 14.7% in its share price since the beginning of the year. The Melbourne-based company has solidified its position as a dominant player in the real estate market, serving around 20,000 property agents globally. While REA Group’s international operations are expanding, its Australian operations remain the primary source of revenue. In Australia, REA generates income by listing properties for sale or rent and charging listing fees. The company has also ventured into financial services, including mortgage broking, although this remains a smaller part of the business.
REA’s growth can be attributed to the network effects and economies of scale that come with being the market leader. With the largest user base and traffic, especially on its Australian platform, REA holds greater market power compared to its closest competitor, Domain. The company’s diverse portfolio, including listings, advertising, mortgage services, and house sharing, adds to its competitive edge, enabling it to stay ahead in the ever-evolving real estate sector.
Qantas Airways (ASX:QAN), Australia’s largest airline, has also captured attention in 2025. Its shares have surged, currently sitting 83.2% above its 52-week low. As the operator of the largest fleet in the country, Qantas continues to dominate both domestic and international markets. The company’s robust offering includes freight services and the highly successful Frequent Flyer program, alongside ownership of Jetstar, which gives it significant influence within Australia’s competitive airline industry.
In terms of valuation, REA Group Ltd (ASX:REA) is trading at a price-to-sales ratio of 21.25x, higher than its 5-year average of 17.41x. This could indicate that the company is being valued more highly than in previous years, driven by consistent revenue growth despite fluctuating market conditions. While this valuation method is just one of many, it provides a glimpse into how the market perceives REA’s continued success.
Both companies are showing resilience and growth, making them key players in their respective markets in 2025.