Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, SodaStream International (Nasdaq: SODA), which manufactures home beverage carbonation systems, has received the dreaded one-star ranking.

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

SodaStream facts


Tel Aviv, Israel

Market Cap

$1.3 billion


Household appliances

Trailing-12-Month Revenue

$228.1 million


CEO Daniel Birnbaum (since 2007)

CFO Daniel Erdreich (since 2007)

Trailing-12-Month Return on Equity



$75.1 million / $9.6 million

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 30% of the 288 members who have rated SodaStream believe the stock will underperform the S&P 500 going forward. These bears include toshimelonhead and FunesDMemorious.

Earlier this month, toshimelonhead showed skepticism over the SodaStream opportunity:

Um, no. I don't get the fascination with soda at home. ... It would need to have a deal with Coke or Pepsi to make this work. "Healthy soda" is an oxymoron, as is "green soda". It might find a small niche, but the real soda money is in restaurant deals and not trying to get at that is a big problem.

Currently, SodaStream even trades at a particularly lofty forward P/E of 52. That represents a clear premium to more conventional, dividend-paying soda plays like Coca-Cola (NYSE: KO) (16), PepsiCo (NYSE: PEP) (14), and Dr Pepper Snapple (NYSE: DPS) (14).

CAPS member FunesDMemorious elaborates on the bear case:

They tout their "attractive razor/razor blade model" but the competition in this case sells a complete shave in a bottle … At home soda water makers have been around for a long time and were apparently big in the UK in the late 70s/early 80s. If it were such a great business I don't know why we are just now bursting back on the scene all the way from the West Bank. And what protection is there from Coke or Pepsi in the unlikely event that the home-soda-making hobby is here to stay this time?

What do you think about SodaStream, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Coca-Cola and PepsiCo. Motley Fool newsletter services have recommended creating a diagonal call position in PepsiCo. The Motley Fool owns shares of Coca-Cola and PepsiCo. Try any of our Foolish newsletter services free for 30 days.

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