Are HUB shares or DOW shares better value in 2025?

The Hub24 Ltd (ASX:HUB) share price has risen 1.9% since the start of 2025. It's probably worth asking, 'is the HUB share price in the money?'
The Hub24 Ltd (ASX:HUB) share price has risen 1.9% since the start of 2025. Meanwhile, the Downer EDI Ltd (ASX:DOW) share price is 10.8% away from its 52-week high. This article explains why it could be worth popping HUB and DOW shares on your watchlist.

HUB share price in focus

Founded in 2007, HUB24 has quickly become a prominent player in the wealth management sector, offering software and platform solutions for financial advice, superannuation, and investment management.

HUB24’s core products include the HUB24 platform, Class, and myprosperity. The HUB24 platform serves financial advisers and their clients, providing access to a wide range of managed funds and investment products. Class is a leading software solution for self-managed super funds (SMSFs), helping manage portfolios, legal documentation, and compliance. Myprosperity offers client portals for accountants and advisers, enhancing service and customer experience.

HUB24’s competitive edge lies in its high-quality service. In 2024, it was recognized as the Overall Best Platform in the Adviser Ratings Financial Advice Landscape Report and ranked first for Overall Satisfaction and Brand Image and Reputation in the 2024 Wealth Insights Platform Service Level Report.

DOW shares

Downer is the leading provider of integrated infrastructure services across Australia and New Zealand, specialising in the construction, maintenance, and operation of transit systems, utility services, and public infrastructure.

While the name might not instantly recognisable, their work is highly visible. For instance, Downer operates Melbourne’s Yarra Trams and manufactures the passenger trains you see in most states.

The company’s operations are divided into three primary segments: Transport, Utilities, and Facilities. The Transport division accounts for just over 50% of Downer’s revenue, with Utilities and Facilities contributing approximately 20% and 30% respectively.

HUB & DOW share price valuation

As a growth company, some of the trends we might investigate from HUB include revenue growth, profit growth, and return on equity (ROE). These measures can indicate the growth rates and prospects of the company, as well as their ability to generate returns from their assets.

Since 2021, HUB has grown revenue at a rate of 44.4% per year to reach $328m in FY24. Over the same stretch of time, net profit has increased from $10m to $47m. HUB last reported a ROE of 9.2%.

Since DOW is more of a ‘mature’ or ‘blue-chip’ business, some of the metrics that could be considered important include the debt/equity ratio, average yield, and return on equity, or ROE. These are useful as they give us an idea of debt levels and the company’s ability to generate a return on assets and pay out profits (which is what we want from a blue chip). In FY24, Downer EDI Ltd reported a debt/equity ratio of 81.1%, meaning the company has more equity than debt.

As for dividends, since 2019 DOW has achieved an average dividend yield of 3.7% per year.

Finally, in FY24, DOW reported an ROE of 3.6%. For a mature business you’re generally looking for an ROE of more than 10%, so DOW’s returns are a bit less than what we’d expect.

Keep in mind that these are only a small selection of metrics. We don’t have enough information to value the business or make an investment decision. To learn more about valuation, check out one of our free online investing courses.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #563907.

5%+ in passive income

Owen Rask’s investing report available

With bond ETFs like ASX:IAF and the S&P 500 riding high, now could be one of the best times to start earning passive income from a portfolio of shares and ETFs.

In this free analyst report, our Chief Investment Officer, Owen Rask, names 10 ASX stocks and ETFs to watch.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Skip to content