SodaStream International Ltd (SODA), Whirlpool Corporation (WHR): Playing the Housing Recovery with Appliances

Latin America was also showing some very solid double-digit growth, as government home appliance incentives in Brazil led to higher volumes. Like Whirlpool Corporation (NYSE:WHR), Electrolux AB (ADR) (OTCMKTS:ELUXY) expects a slowdown in Europe for the year. Yet, the company’s overall growth doesn’t seem worth the premium at which the stock is trading.

Valuations and Metrics

Whirlpool Corporation (NYSE:WHR) looks like its valued attractively at the moment, with a P/E of 16.62 times trailing earnings and a forward P/E of only 11.04. Major competitor Electrolux AB (ADR) (OTCMKTS:ELUXY) trades at 22.39 times trailing earnings and a forward P/E of 15.03. Meanwhile, Whirlpool has a very low PEG ratio of 0.45, and a decent return on equity just short of 15%. Finally, its debt load is manageable, with a total debt to equity ratio of 52.62.

The Bottom Line

The future looks bright for Whirlpool Corporation (NYSE:WHR), as continued strength in the US housing market has led to increased sales. What’s more, the company is expecting this strong performance to keep up going forward, as it continues innovating its product line and trimming costs. Trading at a discount to its closest competitor, despite a considerably stronger market position and a recently-announced partnership with Sodastream International Ltd (NASDAQ:SODA), the stock looks like it could go even higher.

The article Playing the Housing Recovery with Appliances originally appeared on Fool.com.

Daniel James has no position in any stocks mentioned. The Motley Fool recommends SodaStream. The Motley Fool owns shares of SodaStream.

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