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In the spirit of World Cup competition, we're holding our own tournament in search of the Better Stock Today. We're pitting 32 companies against each other and you, the reader, will determine the winner.
Johnson & Johnson takes on SodaStream for this last round-robin match up in our search for the better stock today.
Healthcare analyst David Williamson believes the number one reason Johnson & Johnson should win this match is its diversification. The health care conglomerate has one of the strongest pharmaceutical divisions in the industry, regularly posting double-digit growth and debuting exciting drugs like Imbruvica. J&J's medical device unit is still benefiting from the massive $21 billion Synthes acquisition and its consumer unit has a strong exposure to fast growing emerging markets. Add in a stable dividend and investors have a solid defensive stock with nice pharma upside.
Mark Reeth, a Consumer Goods analyst, believes the number one reason SodaStream should win this match is the fact that it's undervalued. With shares down 25% SodaStream has presented investors with a great buying opportunity. While the company didn't give investors the same growth rates it usually does in the U.S., it's still performing well in its other markets. There's no reason it won't continue to see success in those markets, and it'll likely return to form in the U.S. over the course of the year. Meanwhile Coke and Keurig are a long way from perfecting their cold-beverage device, but SodaStream's already got it figured out and isn't going anywhere.
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Vote here to determine the winner of this match and sound off in the comments. Check back to Fool.com to see who advances in the tournament.
The article Better Stock Today Challenge: Johnson & Johnson vs. SodaStream originally appeared on Fool.com.
David Williamson owns shares of Johnson & Johnson. Mark Reeth has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson and SodaStream. The Motley Fool owns shares of Johnson & Johnson and SodaStream. 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.Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
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