Highlights
- COH demonstrates strong growth and global leadership in hearing tech
- JBH remains a household name with a resilient retail presence
- Both stocks show contrasting fundamentals worth investor atten
As investors scan the ASX for companies with compelling long-term stories, two prominent names—Cochlear and JB Hi-Fi —are standing out for very different reasons. These companies operate in distinct industries but share a common thread: their established leadership and resilience across market cycles.
Cochlear (ASX:COH): Global Innovator in Hearing Solutions
Founded in 1981 and headquartered in Sydney, Cochlear is recognized globally for its breakthroughs in hearing implants. The company focuses on three categories of implantable hearing solutions, each designed to meet unique medical needs. With over 750,000 devices delivered worldwide and a team of over 5,000 professionals spanning more than 50 countries, Cochlear’s impact on the healthcare technology sector is substantial.
Its mission centers on improving lives through enhanced hearing, backed by consistent innovation and robust product delivery. Cochlear’s growth journey is visible in its financial trajectory—between FY21 and FY24, revenue grew at an annualized rate of 14.3%, reaching $2,236 million. Net profit also expanded from $324 million to $357 million during this period, while return on equity (ROE) stood at a healthy 19.9%.
This blend of global reach, technical leadership, and steady growth keeps the company in focus among those seeking stable long-term exposure in healthcare innovation.
JB Hi-Fi (ASX:JBH): Retail Resilience with Competitive Edge
Established in 1974, JB Hi-Fi has grown into one of Australia’s top retailers of electronics and home entertainment goods. Its operations are divided across JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys—the latter added to the portfolio in 2016. Known for offering value-driven pricing and competitive promotions, JB Hi-Fi leverages a cost-leadership strategy that appeals strongly to price-sensitive consumers.
JB Hi-Fi’s revenue has climbed steadily over the past three years, with a compound annual growth rate of 2.5%, reaching $9,592 million in FY24. While net profit declined from $506 million to $439 million during that time, its ROE remains strong at 29.5%, indicating efficient capital management and sustained profitability in a tight-margin industry.
Whether it's Cochlear’s consistent innovation in the health-tech space or JB Hi-Fi’s stronghold in retail with a customer-centric pricing model, both companies offer notable qualities. The contrast in their growth profiles and market segments makes them valuable to consider when evaluating diversified opportunities on the ASX.