SodaStream (NASDAQ: SODA) and Whirlpool (NYSE:WHR) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Volatility & Risk

SodaStream has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Whirlpool has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for SodaStream and Whirlpool, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SodaStream 0 2 3 0 2.60
Whirlpool 1 5 2 0 2.13

SodaStream presently has a consensus target price of $66.25, suggesting a potential downside of 30.95%. Whirlpool has a consensus target price of $185.80, suggesting a potential upside of 24.39%. Given Whirlpool’s higher probable upside, analysts plainly believe Whirlpool is more favorable than SodaStream.

Profitability

This table compares SodaStream and Whirlpool’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SodaStream 13.69% 16.37% 13.35%
Whirlpool 1.65% 18.36% 5.08%

Dividends

Whirlpool pays an annual dividend of $4.40 per share and has a dividend yield of 2.9%. SodaStream does not pay a dividend. Whirlpool pays out 32.0% of its earnings in the form of a dividend. Whirlpool has raised its dividend for 7 consecutive years.

Earnings & Valuation

This table compares SodaStream and Whirlpool’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SodaStream $543.37 million 3.99 $74.38 million $3.29 29.16
Whirlpool $21.25 billion 0.50 $350.00 million $13.74 10.87

Whirlpool has higher revenue and earnings than SodaStream. Whirlpool is trading at a lower price-to-earnings ratio than SodaStream, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

53.7% of SodaStream shares are owned by institutional investors. Comparatively, 90.3% of Whirlpool shares are owned by institutional investors. 2.8% of Whirlpool shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Whirlpool beats SodaStream on 10 of the 17 factors compared between the two stocks.

SodaStream Company Profile

SodaStream International Ltd., together with its subsidiaries, manufactures, distributes, and sells home beverage carbonation systems. Its home beverage carbonation systems enable consumers to transform ordinary tap water into sparkling water and flavored sparkling water. The company offers sparkling water makers and exchangeable carbon-dioxide (CO2) cylinders, as well as consumables, including CO2 refills, reusable carbonation bottles, and flavors; and accessories for its products that are manufactured by third parties. It also distributes Brita water filtration systems, such as water containers and filter cartridges in Israel. SodaStream International Ltd. markets its products directly; and through individual retail stores, local distributors, and online under the SodaStream and Soda-Club brands. As of February 14, 2018, the company offered its products through approximately 80,000 individual retail stores across 45 countries. It operates in the Americas; Western Europe; the Asia-Pacific; and Central and Eastern Europe, the Middle East, and Africa. The company was formerly known as Soda-Club Holdings Ltd. and changed its name to SodaStream International Ltd. in March 2010. SodaStream International Ltd. was founded in 1903 and is headquartered in Airport City, Israel.

Whirlpool Company Profile

Whirlpool Corporation manufactures and markets home appliances and related products. It operates through four segments: North America; Europe, Middle East and Africa; Latin America; and Asia. The company's principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other small domestic appliances. It also produces hermetic compressors for refrigeration systems. The company markets and distributes its products primarily under the Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, Jenn-Air, Indesit, and Hotpoint. Whirlpool Corporation sells its products to retailers, distributors, dealers, builders, and other manufacturers. The company was founded in 1898 and is headquartered in Benton Harbor, Michigan.

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