Dr Pepper Snapple Group (NYSE: DPS) and SodaStream International (NASDAQ:SODA) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitabiliy, dividends, valuation, risk, earnings and institutional ownership.

Volatility & Risk

Dr Pepper Snapple Group has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, SodaStream International has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Valuation and Earnings

This table compares Dr Pepper Snapple Group and SodaStream International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dr Pepper Snapple Group $6.46 billion 2.57 $1.61 billion $4.54 19.89
SodaStream International $490.48 million 2.40 $80.58 million $2.43 22.46

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

Insider & Institutional Ownership

90.0% of Dr Pepper Snapple Group shares are owned by institutional investors. Comparatively, 44.9% of SodaStream International shares are owned by institutional investors. 0.6% of Dr Pepper Snapple Group 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.

Profitability

This table compares Dr Pepper Snapple Group and SodaStream International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dr Pepper Snapple Group 13.03% 38.52% 8.98%
SodaStream International 10.83% 13.96% 11.17%

Dividends

Dr Pepper Snapple Group pays an annual dividend of $2.32 per share and has a dividend yield of 2.6%. SodaStream International does not pay a dividend. Dr Pepper Snapple Group pays out 51.1% of its earnings in the form of a dividend. SodaStream International has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Dr Pepper Snapple Group and SodaStream International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dr Pepper Snapple Group 1 9 5 0 2.27
SodaStream International 0 4 0 0 2.00

Dr Pepper Snapple Group currently has a consensus target price of $98.17, suggesting a potential upside of 8.69%. SodaStream International has a consensus target price of $44.00, suggesting a potential downside of 19.39%. Given Dr Pepper Snapple Group’s stronger consensus rating and higher possible upside, analysts plainly believe Dr Pepper Snapple Group is more favorable than SodaStream International.

Summary

Dr Pepper Snapple Group beats SodaStream International on 12 of the 17 factors compared between the two stocks.

Dr Pepper Snapple Group Company Profile

Dr Pepper Snapple Group, Inc. is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Mexico and Canada. The Company offers a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, water and mixers. The Company’s segments include Beverage Concentrates, Packaged Beverages and Latin America Beverages. The Company’s brand portfolio includes CSD brands, such as Dr Pepper, Canada Dry, Penafiel, Squirt, 7UP, Crush, A&W, Sunkist soda and Schweppes, and NCB brands, such as Snapple, Hawaiian Punch, Mott’s and Clamato. The Company’s NCB brands include Snapple, Hawaiian Punch, Mott’s, FIJI mineral water, Clamato, Yoo-Hoo, Deja Blue, Bai Brands, ReaLemon, AriZona tea, Vita Coco coconut water, Mr and Mrs T mixers, BodyArmor, Nantucket Nectars, Garden Cocktail, Mistic and Rose’s.

SodaStream International Company Profile

SodaStream International Ltd. is a sparkling water company. The Company manufactures, distributes and sells home beverage carbonation systems, which enable consumers to transform ordinary tap water into sparkling water and flavored sparkling water. The Company’s segments include The Americas, Western Europe, Asia-Pacific, and Central and Eastern Europe, Middle East and Africa (CEMEA). The Americas segment consists of the United States, Canada and other markets in North America, Central America and South America, which are influenced by the consumption culture of the United States. The Western Europe segment consists of its markets in Western and Northern Europe, which are characterized by high price levels. Its Asia-Pacific segment consists of its markets in Australia and New Zealand, together with other markets in East Asia, including Japan and South Korea. The CEMEA segment consists of its markets in Central and Eastern Europe, Israel and South Africa.

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