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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 Fool.com 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.

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