Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coin-sorting machine maker and DVD kiosk maven Coinstar (NASDAQ:CSTR) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Coinstar's business, and see what CAPS investors are saying about the stock right now.

Coinstar facts

Headquarters (founded)

Bellevue, Wash. (1991)

Market Cap

$1.01 billion


Specialized consumer services

TTM Revenue

$911.9 million


CEO Paul Davis

COO Gregg Kaplan

Trailing-12-Month Price-to-Earnings (CSTR and S&P 500)

71 and 15.8

Return on Equity (average last three years)



Blockbuster (NYSE:BBI)


CAPS members bearish on CSTR also bearish on


D.R. Horton

CAPS members bullish on CSTR bullish on



Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 44 of the 192 members who have rated Coinstar -- some 23% -- believe the stock will underperform the S&P 500 going forward. These bears include All-Star dollarpuppy, who is ranked in the top 2% of our community, and smartdanny.

In December, dollarpuppy warned Fools that Coinstar "is making the right moves, but remember that we are in a credit crunch." Our CAPS member concludes: "While DVD kiosks and cashing in coins are likely to be popular with consumers during this recession, getting money to buy those new kiosks may become increasingly difficult."

In a pitch from last month, smartdanny cites Coinstar's recent move -- purchasing the remaining portion of DVD rental service Redbox that it does not already own, from McDonald's (NYSE:MCD) and others -- as a particularly risky one:

Looking at their ROE, ROI, and ROA doesn't excite me in the slightest, and makes me wonder how well management will be able to translate growing Redbox revenues into net income. While I recognize that the Redbox rollout once completed, and after some of the associated debt had been paid off, has substantial earnings potential, those potential earnings are by no means certain. I would be concerned about potential increases in the fees paid to purchase movies from the studios, and the inability to raise prices in a future inflationary environment without changing the psychology of the customer.

What do you think about Coinstar, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Netflix and Apple are Motley Fool Stock Advisor picks. Google is a Rule Breakers recommendation. The Fool's disclosure policy always gets a perfect score.