Australia’s 10 largest stocks

Truly understanding what a company does is an important step to take before committing your hard-earned dollars. So, to get you started on your research journey, we’ve put together a quick intro to the 10 largest companies on the Australian sharemarket by market cap as of May 2023 (Source: IRESS).

1. BHP Group (BHP)

BHP is not only the world’s largest mining company based on market capitalisation, it’s also the biggest stock on the Australian sharemarket as of May 2023. In fact, it accounts for close to 10% of our sharemarket. BHP makes over half of its profits from selling iron ore (used in steel making), but it also produces copper, coal, nickel and potash. The company owns mines and assets in over 90 countries including Australia, the United States, Canada, Chile, Peru, Columbia and Brazil.

2. Commonwealth Bank of Australia (CBA)

CBA is Australia’s largest bank. It makes the lion’s share of its profits by lending to homebuyers and business owners. But, it also operates the country’s largest online broker CommSec (us!), and offers home and car insurance. While CBA carries out most of its business in Australia, it does still operate overseas in New Zealand as ASB (Auckland Savings Bank).

3. CSL Limited (CSL)

CSL is the largest Australian-listed healthcare company as of May 2023. It operates two major business units. Its biggest earner is CSL Behring, which develops plasma therapies for the treatment of rare and serious diseases, including bleeding disorders and immune deficiencies. It also runs one of the world’s largest influenza vaccine businesses, Seqirus.

4, 5 and 6. National Australia Bank (NAB), Westpac (WBC) and ANZ Banking Group (ANZ)

The remaining three of Australia’s ‘Big Four’ banks are also the fourth, fifth and sixth largest companies on the ASX 200. Like CBA, they all offer loans to individuals and businesses.

7. Macquarie Group (MQG)

Macquarie is the fifth largest bank on the Australian sharemarket, but it’s quite different to the ‘Big Four’ retail banks. While it does still operate a retail banking division, providing mortgages to homebuyers and loans to businesses, this unit only accounts for a small portion of its profits. Macquarie makes most of its money from investment banking. This includes helping large companies when they merge with or acquire other businesses. Macquarie Bank also differs from CBA, Westpac, ANZ and Westpac as it earns most of its money overseas.

8. Woodside (WDS)

Woodside was established in 1954 and while it is Australia’s largest energy company, Woodside describes itself as a global energy company. The company produces liquefied natural gas, pipeline gas, condensate, natural gas liquids, and crude oil. In 2022 Woodside merged with BHP Petroleum. Woodside has over 4,000 employees.

9. Fortescue Metals (FMG)

Fortescue Metals is one of the world’s largest iron ore miners. Iron ore is a key ingredient in the steel making process. Fortescue’s mines are located in the Pilbara region of Western Australia. Fortescue was founded by Andrew Forrest in 2003. He remains the miner’s Chair, its largest shareholder and one of Australia’s richest people.

10. Wesfarmers (WES)

Wesfarmers is a diversified company best known for owning some of Australia’s largest retail brands. The company notes that “its diverse business operations cover: home improvement and outdoor living; apparel and general merchandise; office supplies; health, beauty and wellbeing; chemicals, energy and fertilisers, and industrial and safety products. Wesfarmers is one of Australia's largest employers and has a shareholder base of approximately 484,000.” Retail brands include Bunnings, Kmart and Officeworks, Priceline Pharmacy and catch.com.au.

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