Financial Analysis: Sodastream International (SODA) versus NACCO Industries (NC)

Sodastream International (NASDAQ: SODA) and NACCO Industries (NYSE:NC) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Earnings & Valuation

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This table compares Sodastream International and NACCO Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sodastream International $543.37 million 3.90 $74.38 million $3.29 28.47
NACCO Industries $104.78 million 2.44 $30.33 million N/A N/A

Sodastream International has higher revenue and earnings than NACCO Industries.

Risk and Volatility

Sodastream International has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, NACCO Industries has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.

Dividends

NACCO Industries pays an annual dividend of $1.88 per share and has a dividend yield of 5.0%. Sodastream International does not pay a dividend.

Analyst Ratings

This is a summary of recent recommendations for Sodastream International and NACCO Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sodastream International 0 2 3 0 2.60
NACCO Industries 0 0 0 0 N/A

Sodastream International currently has a consensus price target of $66.25, indicating a potential downside of 29.26%. Given Sodastream International’s higher probable upside, analysts clearly believe Sodastream International is more favorable than NACCO Industries.

Profitability

This table compares Sodastream International and NACCO Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sodastream International 13.69% 16.37% 13.35%
NACCO Industries 7.62% 9.15% 4.00%

Insider & Institutional Ownership

53.9% of Sodastream International shares are owned by institutional investors. Comparatively, 47.0% of NACCO Industries shares are owned by institutional investors. 30.6% of NACCO Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Sodastream International beats NACCO Industries on 11 of the 13 factors compared between the two stocks.

About Sodastream International

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.

About NACCO Industries

NACCO Industries, Inc. operates primarily in the mining industry. The company mines coal in North Dakota, Texas, Mississippi, Louisiana, and on the Navajo Nation in New Mexico for power generation. It provides value-added services, including maintaining and operating draglines for independently owned lime rock quarries; coal handling, processing, and drying services; and surface and mineral acquisition, and lease maintenance services. The company serves electric utilities, independent power providers, activated carbon producers, and synfuels plants. NACCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.

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