SodaStream International Ltd (SODA), The Coca-Cola Company (KO): This Company Beat Estimates and Raised Guidance…Yet Again

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More recently, Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has applied for the trademark of “Karbon” to be used for a home carbonation system. No other details are available at this time, so the risk from Green Mountain is more hype than reality. However, it is certainly worth monitoring any potential competitors, especially a company like Green Mountain that has successfully competed in the kitchen appliance market for years.

While The Coca-Cola Company (NYSE:KO) is highly restricted in how it can develop a home soda system given its relationship with its bottlers, the company has tremendous resources at its disposal. Coca-Cola invested $100 million in the development of the Coke Freestyle machine, and could certainly adapt the Freestyle for sale to consumers.

While there isn’t a formidable challenger to Sodastream International Ltd (NASDAQ:SODA) at the moment, competition will certainly develop over time. Fortunately for SodaStream, its lineup of quality products and extensive retail distribution network (including over 13,000 locations to exchange gas tanks in the United States) give it a significant head start over any future competition.

SodaStream remains a buy

After another strong quarter across the board, there are fewer and fewer reasons to doubt Sodastream International Ltd (NASDAQ:SODA). With a very reasonable valuation model predicting that the stock will double or triple in the next three years and no immediate danger from competing products, SodaStream remains for me a conviction buy.

Brian Shaw owns shares of Coca-Cola and SodaStream. The Motley Fool recommends Coca-Cola, Green Mountain Coffee Roasters, and SodaStream. The Motley Fool owns shares of SodaStream.

The article This Company Beat Estimates and Raised Guidance…Yet Again originally appeared on Fool.com.

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