SodaStream International Ltd (SODA) Got Hosed

Looks like we have a monster vacancy under this particular bed, too.

It’s going to be a good year for SodaStream
The market got it wrong last week, but that only makes things more intriguing now.

SodaStream is now fetching just 15 times next year’s projected earnings. PepsiCo, Inc. (NYSE:PEP) and Coca-Cola fetch multiples of 16 and 17 times, respectively.

It’s not fair to compare SodaStream to the two beverage giants that have been consistent producers for decades, but keep in mind two important distinctions:

1). SodaStream is growing substantially faster. Analysts see double-digit growth at SodaStream. The same can’t be said for the pop stars behind Coke and Pepsi.

2). Analysts have actually been lowering their 2014 targets on Coke and Pepsi since their quarterly reports this month. Meanwhile, analysts have actually been jacking up their projections for SodaStream.

The healthy valuation isn’t the only reason to warm up to the maker of cool soft drinks. SodaStream aired its first Super Bowl commercial this month. It recently announced a deal with Samsung to incorporate its carbonation system in a high-end refrigerator that will dispense sparkling water. Supermarket distribution is being tested to broaden the accessibility of SodaStream syrups and carbonators.

SodaStream is also making friends in high places. A deal with Kraft Foods Group Inc (NASDAQ:KRFT) introduced the food giant’s lemonade and diet drinks as SodaStream brands last year, and Campbell Soup Company (NYSE:CPB) will see V8 Splash and V-Fusion hit stores as SodaStream flavor options this year.

SodaStream didn’t get a lot of respect last week, but it’s been generating results — and that’s what the market ultimately rewards over time.

The article SodaStream Got Hosed originally appeared on Fool.com and is written by Rick Aristotle Munarriz.

Longtime Fool contributor Rick Aristotle Munarriz owns shares of SodaStream. The Motley Fool recommends Coca-Cola, PepsiCo, and SodaStream. The Motley Fool owns shares of PepsiCo and SodaStream.

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