SodaStream International (NASDAQ: SODA) and Long Island Iced Tea Corp. (NASDAQ:LTEA) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Valuation and Earnings

This table compares SodaStream International and Long Island Iced Tea Corp.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SodaStream International $501.96 million 2.72 $89.48 million $2.70 23.18
Long Island Iced Tea Corp. $4.79 million 4.67 -$11.97 million ($1.90) -1.29

SodaStream International has higher revenue and earnings than Long Island Iced Tea Corp.. Long Island Iced Tea Corp. is trading at a lower price-to-earnings ratio than SodaStream International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SodaStream International and Long Island Iced Tea Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SodaStream International 11.89% 14.86% 12.04%
Long Island Iced Tea Corp. -305.26% -349.13% -202.48%

Institutional & Insider Ownership

47.7% of SodaStream International shares are held by institutional investors. Comparatively, 1.1% of Long Island Iced Tea Corp. shares are held by institutional investors. 18.1% of Long Island Iced Tea Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

SodaStream International has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Long Island Iced Tea Corp. has a beta of -10.56, meaning that its stock price is 1,156% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for SodaStream International and Long Island Iced Tea Corp., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SodaStream International 0 2 1 0 2.33
Long Island Iced Tea Corp. 0 0 0 0 N/A

SodaStream International currently has a consensus price target of $61.33, indicating a potential downside of 1.99%. Given SodaStream International’s higher probable upside, analysts plainly believe SodaStream International is more favorable than Long Island Iced Tea Corp..

Summary

SodaStream International beats Long Island Iced Tea Corp. on 10 of the 12 factors compared between the two stocks.

SodaStream International Company Profile

SodaStream International Ltd. is a sparkling water company. The Company manufactures, distributes and sells home beverage carbonation systems, which enable consumers to transform ordinary tap water into sparkling water and flavored sparkling water. The Company’s segments include The Americas, Western Europe, Asia-Pacific, and Central and Eastern Europe, Middle East and Africa (CEMEA). The Americas segment consists of the United States, Canada and other markets in North America, Central America and South America, which are influenced by the consumption culture of the United States. The Western Europe segment consists of its markets in Western and Northern Europe, which are characterized by high price levels. Its Asia-Pacific segment consists of its markets in Australia and New Zealand, together with other markets in East Asia, including Japan and South Korea. The CEMEA segment consists of its markets in Central and Eastern Europe, Israel and South Africa.

Long Island Iced Tea Corp. Company Profile

Long Island Iced Tea Corp. is a holding company operating through its subsidiary, Long Island Brand Beverages, LLC (LIBB). The Company is engaged in the production and distribution of Non-Alcoholic Ready-to-Drink (NARTD) iced tea in the beverage industry. It is organized around its brand, Long Island Iced Tea. Long Island Iced Tea is sold primarily on the East Coast of the United States through a network of national and regional retail chains and distributors. The Company produces brewed tea, using black tea leaves, purified water and natural cane sugar or sucralose. The Company‚Äôs Long Island Iced Tea’s flavors include lemon, peach, raspberry, guava, mango, diet lemon, diet peach, sweet tea, green tea and honey, and half tea and half lemonade. It also offers lower calorie iced tea in over 12 ounce bottles. The lower calorie flavor options include mango, raspberry and peach. The Company’s products include All-Natural Tea, Diet Tea, Fruit-Flavored Tea, Organic Tea and Herbal Tea.

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