Healthcare is a core slice of almost every Aussie portfolio, but the sector comes in many flavours. If you're weighing up Sigma Healthcare Ltd (ASX: SIG) and Sonic Healthcare Ltd (ASX: SHL) shares, the decision boils down to more than just "pharma vs pathology."
Sigma Healthcare is a stalwart of Australian pharmacy. Following its 2025 merger with Chemist Warehouse, Sigma now blends a large pharmaceutical distribution network with the country's biggest pharmacy retail footprint, operating well-known brands such as Chemist Warehouse, Amcal, and Discount Drug Stores. According to its most recent company profile, Sigma was founded in 1912 and is based in Clayton, Victoria.
Dividends are there, but on the smaller end, with a yield of 1.54% and full 100% franking. Year to date, Sigma's share price has slipped by 10.5%.
Sonic Healthcare is a different beast. Rather than retailing or wholesaling medication, Sonic is a diagnostics empire: the largest private pathology services operator in Australia, the UK, Germany, and Switzerland, plus big positions in the US, New Zealand, and Belgium. Pathology accounts for most of its revenue, but Sonic also boasts a leading role in diagnostic imaging and medical centre ownership in Australia.
Sonic has a market cap of $9.70 billion and a P/E ratio of 15.89 — far lower than Sigma's. For income-seekers, the dividend yield is a noticeable 5.53%, although franking is partial at 60%.
Comparing 18 August – 17 September 2026:.
Sonic's P/E ratio of 15.89 is far more attractive than Sigma's 41.77, suggesting you're paying much less per dollar of reported profit.