So far in 2022 the Magellan Financial Group Ltd (ASX: MFG) share price has traced 38% lower. Using the same timeframe, the Australian Ethical Investment Ltd (ASX: AEF) share price has drifted 63% lower.
MFG share price
Magellan was formed in 2006 by Hamish Douglas and Chris Mackay to generate attractive returns for clients by investing in global equities and global listed infrastructure while protecting their capital.
The company has four investment funds including Global Equities, Infrastructure, Sustainable and Australian Equities.
Today, Magellan has over 37 investment professionals and manages over $110 billion in funds for clients based around the world. Magellan has been a consistent dividend paying company over the last several years.
Right now, Magellan Financial Group Ltd shares are trading at a price-earnings ratio (P/E) of 7x. To put that in context, the S&P/ASX 200 (INDEXASX: XJO) long-run average is around 16x.
Aristocrat under pressure
Founded by Len Ainsworth in 1953, Aristocrat Leisure is an Australian gambling machine operator that is headquartered in Sydney.
Aristocrat is currently the largest machine manufacturer in Australia and one of the largest manufacturers of slot machines around the world. One of its largest business segments is the American market, with its digital arm now the largest revenue contributor.
Gaming machines can be sold outright to a venue or gaming operator. Alternatively, a machine can be installed with a proportion of the revenue generated being paid on a recurring basis back to Aristocrat.
The ALL share price is trading at the equivalent P/E of 23x. However, valuation shouldn’t be the only focus since Aristocrat Leisure has been growing its revenue rapidly in recent years.
