Financial Analysis: iRobot (IRBT) versus Sodastream International (SODA)

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

Earnings & Valuation

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This table compares Sodastream International and iRobot’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sodastream International $543.37 million 3.95 $74.38 million $3.29 28.83
iRobot $883.91 million 2.02 $50.96 million $1.77 35.86

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

Profitability

This table compares Sodastream International and iRobot’s 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%
iRobot 5.77% 12.62% 9.41%

Risk and Volatility

Sodastream International has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, iRobot has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sodastream International 0 2 3 0 2.60
iRobot 1 6 3 0 2.20

Sodastream International currently has a consensus target price of $66.25, indicating a potential downside of 30.15%. iRobot has a consensus target price of $67.25, indicating a potential upside of 5.96%. Given iRobot’s higher possible upside, analysts plainly believe iRobot is more favorable than Sodastream International.

Institutional and Insider Ownership

53.7% of Sodastream International shares are owned by institutional investors. Comparatively, 89.4% of iRobot shares are owned by institutional investors. 4.5% of iRobot shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Sodastream International beats iRobot on 7 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 iRobot

iRobot Corporation designs, builds, and sells robots for the consumer market worldwide. It offers Roomba floor vacuuming robots; Braava family of automatic floor mopping robots; and Mirra Pool Cleaning Robot to clean residential pools and removes debris as small as two microns from pool floors, walls, and stair. The company sells its robots through various distribution channels, including chain stores and other national retailers, its online store, and value-added distributors and resellers. iRobot Corporation was founded in 1990 and is headquartered in Bedford, Massachusetts.

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