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Are ALL shares or SHL shares better value in 2024?

The Aristocrat Leisure Limited (ASX:ALL) share price has risen 68.3% since the start of 2024. It's probably worth asking, 'is the ALL share price in the money?'
The Aristocrat Leisure Limited (ASX:ALL) share price has risen 68.3% since the start of 2024. Also in 2024, the Sonic Healthcare Ltd (ASX:SHL) share price is 13.8% away from its 52-week high. This article explains why it could be worth popping ALL and SHL shares on your watchlist.

ALL share price in focus

Founded by Len Ainsworth in 1953, Aristocrat Leisure is an Australian gambling machine operator that is headquartered in Sydney.

Currently, Aristocrat is the largest manufacturer of gambling machines in Australia and one of the world’s leading producers of slot machines. However, the company’s business extends beyond just physical machines; Aristocrat also develops online games, which have grown to contribute nearly half of its total revenue.

Aristocrat’s gaming machines can either be sold outright to venues or gaming operators or installed with a revenue-sharing model, where a portion of the earnings generated is paid back to Aristocrat on a recurring basis.

SHL shares

Sonic Healthcare, listed in April 1987, has grown into one of the world’s largest pathology businesses, with operations spanning Australia, New Zealand, Europe, and North America.

The company provides a wide range of services, including laboratory medicine, pathology, diagnostic imaging, radiology, general practice medicine, and corporate medical services.

Sonic Healthcare is committed to prioritizing the needs of doctors and their patients, striving for medical excellence while fostering a supportive and desirable workplace.

ALL share price valuation

As a growth company, some of the trends we might investigate from ALL 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, ALL has grown revenue at a rate of 11.0% per year to reach $6,485m in FY24. Over the same stretch of time, net profit has increased from $1,378m to $1,512m. ALL last reported a ROE of 22.8%.

Over the last 3 years, SHL has increased revenue at a rate of 0.8% per year to hit $8,967m in FY24. Meanwhile, net profit has fallen from $1,315m to $511m. SHL’s last reported ROE was 6.8%.

Please keep in mind that context is important – these metrics give us some indication of company performance, but it’s just the start of valuing ALL or SHL shares. To learn more about valuation, check out one of our free online investing courses.

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