HUB24 vs Rio Tinto in 2025: Which ASX200 Stock Shows Better Value?

June 20, 2025 02:26 PM AEST | By Team Kalkine Media

HUB24 vs Rio Tinto in 2025: Which ASX200 Stock Shows Better Value? — Image source: Shutterstock

HUB24’s (ASX:HUB) Growth-Focused Momentum

HUB24 Ltd, founded in 2007, has grown into a key innovator in the financial technology space, delivering software and platform solutions tailored to financial advisers, SMSFs, and investment professionals. Its flagship products include the HUB24 platform, Class (for SMSF administration), and Myprosperity (a client engagement tool for accountants and advisers).

Recognition continues to affirm its standing in the industry, with accolades in 2024 from Adviser Ratings and Wealth Insights highlighting excellence in platform service and brand perception.

From a financial standpoint, HUB24 showcases dynamic growth characteristics. Between 2021 and FY24, the company’s revenue surged at a compound annual growth rate (CAGR) of 44.4%, reaching $328 million. Meanwhile, net profit climbed from $10 million to $47 million, and return on equity (ROE) improved to 9.2%. These markers underscore HUB24’s transition from scaling to becoming a significant player on the ASX200.

Rio Tinto’s (ASX:RIO) Established Strengths

Rio Tinto, established in 1873, remains one of the largest mining and metals companies worldwide, with operations spanning aluminium, copper, diamonds, energy, and iron ore. Its fortunes are tightly linked to global commodity prices, particularly iron ore, a foundational input in steelmaking.

Unlike growth-oriented companies, Rio Tinto exhibits mature characteristics that attract those who value income and stability. In CY24, the company recorded a debt-to-equity ratio of 23.9%, showing a stronger equity base than debt obligations. Additionally, it has consistently distributed income to shareholders, averaging a dividend yield of 6.8% annually since 2020. Impressively, it also posted an ROE of 20.3% in CY24—comfortably above the 10% benchmark often sought for well-established businesses.

HUB vs RIO: Different Plays, Same Index

Both HUB24 and Rio Tinto bring different narratives to the ASX200 stage. HUB24 thrives on innovation, tech-driven growth, and service excellence, while Rio Tinto offers robust yield, operational scale, and consistent returns. Each company has demonstrated financial resilience in its own way—whether through explosive revenue growth or sustainable income metrics.

As of mid-2025, HUB24 shares have risen 17.3% year-to-date, reflecting investor optimism in its business model. Conversely, Rio Tinto shares trade 20.9% below their 52-week high, indicating potential value retracement in a cyclical environment.

Whether one favours disruptive financial platforms or blue-chip mining giants, both HUB24 and Rio Tinto remain worth monitoring closely as key components of the ASX200 landscape.

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