Subscribe Sign in

REA Group vs CAR Group: Which is best for income investors?

1 min read Rewritten in plain language

Dividend InvestingAssisted

Show what we removed Rules applied: A1×4 A3×5 A4 D2×2 D3×10 E3×7 E5 F1 all 30 rules
  • Comparing REA Group Ltd and CAR Group Ltd might seem like splitting hairs at first—both are digital advertising powerhouses offering online marketplaces in property and automotive, respectively.
  • REA Group runs the dominant realestate.com.au platform in Australia, a go-to site for property buyers, sellers, and renters.
  • Its 1.88% dividend yield won't knock your socks off, but it's underpinned by 100% franking—perfect for Aussie investors who can use those tax credits.
  • Fundamentally, CAR Group has a $9.09 billion market cap—smaller than REA but still substantial.
  • CAR Group's price history starts at $29.10 and ends at $23.97, a decline of about 18%.

5 sentences from our version of the report, chosen to cover it. Nothing here is written; every line is in the article below. How

Comparing REA Group Ltd and CAR Group Ltd might seem like splitting hairs at first—both are digital advertising powerhouses offering online marketplaces in property and automotive, respectively.

The report’s most important sentence, shortened and in plain words. How

Headline check

All two things this headline claims are in the report.

Figures, names and quoted words in the headline, looked for in the report itself — not in the summary above. How this is checked

PIIGS Mk 4 map
PIIGS Mk 4 map The original uploader was Snow storm in Eastern Asia at English Wikipedia . / Wikimedia Commons, CC BY

Comparing REA Group Ltd and CAR Group Ltd might seem like splitting hairs at first—both are digital advertising powerhouses offering online marketplaces in property and automotive, respectively. If you're searching for franked dividends, capital growth or just a yield, here's how these two stack up.

REA Group runs the dominant realestate.com.au platform in Australia, a go-to site for property buyers, sellers, and renters.

Looking at the fundamentals, REA is a $20.84 billion business with a P/E ratio of 30.98. Its 1.88% dividend yield won't knock your socks off, but it's underpinned by 100% franking—perfect for Aussie investors who can use those tax credits. REA's earnings per share sits at $5.106, and dividend history shows steady growth over recent years, with payments franked as far back as the records go.

CAR Group, most familiar to Aussies as the owner of carsales.com.au, is a leader in online automotive classifieds.

Fundamentally, CAR Group has a $9.09 billion market cap—smaller than REA but still substantial. Its P/E ratio is 29.01, a touch lower than REA's, and its dividend yield is a standout at 3.58%.

REA's share price history shows a drop from $178.62 to $159.22: a fall of about 11%.

CAR Group's price history starts at $29.10 and ends at $23.97, a decline of about 18%.

While REA Group's franked dividends are gold for some—especially for retirees or those keen to maximise franked income—the yield is modest at 1.88%.

Shortened to 1 minute of reading, this version reads 12.6 on the Niral Score.

You are reading our version, not theirs. This is The Motley Fool Australia's report shortened to its most important sentences, in plainer words, with verdicts and loaded words taken out. Plain description stays, and so do adjectives that carry a fact, such as "former" or "federal". The reporting, the facts and the quotations are theirs — quotations are never edited — and the indicators beside it measure this version. Hover or tap Adjectives to see every one left in the text.

How outlets headlined it

Each outlet's own headline. Struck through: the loaded words our version leaves out. Plainest first.

  • The Motley Fool Australia REA Group vs CAR Group: Which is best for income investors? plain
  • The Motley Fool Australia Metcash vs Wesfarmers: Which Is Better for Income Investors? plain

How each outlet filed it

Outlet Niral ScoreAdjectivesSourcingHappiness
The Motley Fool Australiaas they published this story 17 17 12 56.2
The Motley Fool Australia 22 34 0 54.8
Mundane Readneutralized from The Motley Fool Australia 13.1 13 12 56.2

Sign in to react.

Comments

Nothing here yet.

Sign in to comment.

Questions

Readers can ask a question about this story here. Questions and answers are for subscribers. Sign in to read them.

Comments are read before they appear where anything in them needs a person to look. Nothing posted here is ever deleted; a comment taken down keeps its text and the reason, so the decision can be looked at again. How this works

The same event elsewhere

1 other outlet filed this story. The scoreboard above is what they did differently.