Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Sodastream International Ltd (SODA), Green Mountain Coffee Roasters Inc. (GMCR): Should You Invest?

However, Sodastream International Ltd (NASDAQ:SODA) and Green Mountain are really only fetching 18 and 22 times next year’s profit targets, respectively. That may not seem cheap, but keep in mind that The Coca-Cola Company (NYSE:KO) is also treading at 18 times next year’s income estimates, and the cola giant’s top-line growth is in the low single digits. Starbucks Corporation (NASDAQ:SBUX) is growing a bit faster than that, but it’s not as fast as Green Mountain despite trading at a hefty 24 times next year’s earnings.

SodaStream makers and Keurig single-serve brewers are both cool and hot right now. Investors betting against them may want to check the temperature if they don’t want to get burned again.

The article Blessed Are the Drink Makers originally appeared on is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz owns shares of Green Mountain Coffee Roasters and SodaStream. The Motley Fool recommends Coca-Cola, Green Mountain Coffee Roasters, SodaStream, and Starbucks and owns shares of SodaStream and Starbucks.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.