In-home beverage system competitors SodaStream International Ltd. (NASDAQ:SODA) and Keurig Green Mountain (NASDAQ:GMCR) have been in the news a great deal lately. It all started in February 2014, when it was announced that Keurig Green Mountain had entered into an agreement with The Coca-Cola Company (NYSE:KO) that not only included a 10-year agreement to collaborate on Keurig's soon-to-be-released "Keurig Cold" at-home beverage system, but an equity investment by Coca-Cola in Keurig Green Mountain to the tune of $1.25 billion for a 10% stake in Keurig Green Mountain.
Immediately following the announcement, speculation surrounded competitor SodaStream and the possibility of it too partnering with a much larger global beverage giant, especially in light of the company's recently slowing growth rate. Such speculation languished until it recently surfaced again when an Israeli newspaper, Calcalist, citing unnamed sources, reported that SodaStream was in talks with global coffee giant Starbucks about a potential deal.
Needless to say, there is plenty of speculation about the futures of these two in-home beverage system companies. The real question is, which of the two represents the better investment for long-term investors? Motley Fool consumer goods analyst Sean O'Reilly weighs in.
Sean O'Reilly has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola, Keurig Green Mountain, and SodaStream. The Motley Fool owns shares of SodaStream and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.