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Are ZIP shares or SCG shares better value in 2025?

The Zip Co Ltd (ASX:ZIP) share price has fallen 45.8% since the start of 2025. It's probably worth asking, 'is the ZIP share price in the money?'
The Zip Co Ltd (ASX:ZIP) share price has fallen 45.8% since the start of 2025. Meanwhile, the Scentre Group (ASX:SCG) share price is 13.1% away from its 52-week high. This article explains why it could be worth popping ZIP and SCG shares on your watchlist.

ZIP share price in focus

Founded in 2013, Zip Co is a financial technology company specialising in buy-now-pay-later (BNPL) services, a popular choice among retail consumers.

Zip enables customers to make purchases instantly and pay them off over interest-free instalments, offering a flexible and convenient payment option.

Operating globally, Zip has partnered with over 79,300 retailers and serves more than 6 million customers. In September 2020, the company expanded its presence in the US market by acquiring the BNPL provider Quadpay.

SCG shares

Scentre Group is a real estate company specializing in shopping centres, operating under the Westfield brand in Australia and New Zealand.

The group manages a portfolio of 42 centres valued at over $34 billion, boasting an occupancy rate exceeding 99% and attracting more than half a billion visitors annually.

These centres are strategically located in prime trade areas and feature long-term tenancies with retailers catering to diverse consumer interests in fashion, dining, leisure, and entertainment.

ZIP & SCG share price valuation

As a growth company, some of the trends we might investigate from ZIP 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, ZIP has grown revenue at a rate of 75.7% per year to reach $868m in FY24. Over the same stretch of time, net profit has increased from -$678m to $6m. As for ROE, ZIP last reported a ROE of 1.8%.

Since SCG 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 CY23, Scentre Group reported a debt/equity ratio of 87.3%, meaning the company has more equity than debt.

As for dividends, since 2020 SCG has paid an average dividend yield of 4.8% per year.

Finally, in CY23, SCG reported an ROE of 1.0%. For a mature business you’re generally looking for an ROE of more than 10%, so SCG’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.

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