Whirlpool (WHR) & Sodastream International (SODA) Financial Analysis

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

Dividends

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Whirlpool pays an annual dividend of $4.40 per share and has a dividend yield of 3.0%. Sodastream International does not pay a dividend. Whirlpool pays out 32.0% of its earnings in the form of a dividend. Whirlpool has increased its dividend for 7 consecutive years.

Risk and Volatility

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

Profitability

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

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

Valuation & Earnings

This table compares Whirlpool and Sodastream International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Whirlpool $21.25 billion 0.49 $350.00 million $13.74 10.81
Sodastream International $543.37 million 3.90 $74.38 million $3.29 28.47

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Whirlpool and Sodastream International, as provided by MarketBeat.com.

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

Whirlpool presently has a consensus target price of $185.80, indicating a potential upside of 25.04%. Sodastream International has a consensus target price of $66.25, indicating a potential downside of 29.26%. Given Whirlpool’s higher probable upside, equities analysts plainly believe Whirlpool is more favorable than Sodastream International.

Insider & Institutional Ownership

90.3% of Whirlpool shares are held by institutional investors. Comparatively, 53.9% of Sodastream International shares are held by institutional investors. 2.8% of Whirlpool shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

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

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.

Sodastream International Company Profile

SodaStream International Ltd., together with its subsidiaries, manufactures, distributes, and sells home beverage carbonation systems. Its home beverage carbonation systems, which 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, such as CO2 refills, reusable carbonation bottles, and flavors; and other accessories, such as bottle cleaning materials and ice cube trays, as well as distributes Brita water filtration systems in Israel. It markets its products directly; and through individual retail stores, local distributors, and online under the SodaStream and Soda-Club brand names. As of December 31, 2016, the company sells its products through approximately 80,000 individual retail stores in 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.

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