Head-To-Head Review: Arlo Technologies (ARLO) and Its Competitors

Arlo Technologies (NYSE:ARLO) is one of 252 public companies in the “INTERNET SOFTWARE” industry, but how does it contrast to its rivals? We will compare Arlo Technologies to related businesses based on the strength of its valuation, analyst recommendations, earnings, profitability, dividends, risk and institutional ownership.

Valuation & Earnings

This table compares Arlo Technologies and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Arlo Technologies	$510.89 million	-$30.50 million	-254.89
Arlo Technologies Competitors	$2.22 billion	$338.54 million	-1.27

Arlo Technologies’ rivals have higher revenue and earnings than Arlo Technologies. Arlo Technologies is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Arlo Technologies and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arlo Technologies	-1.38%	-6.69%	-2.29%
Arlo Technologies Competitors	-194.87%	-65.86%	-6.59%

Insider and Institutional Ownership

83.2% of Arlo Technologies shares are owned by institutional investors. Comparatively, 60.4% of shares of all “INTERNET SOFTWARE” companies are owned by institutional investors. 5.2% of Arlo Technologies shares are owned by company insiders. Comparatively, 17.6% of shares of all “INTERNET SOFTWARE” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Arlo Technologies and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arlo Technologies	0	0	3	1	3.25
Arlo Technologies Competitors	1366	9838	19885	493	2.62

Arlo Technologies currently has a consensus target price of $23.00, indicating a potential upside of 28.91%. As a group, “INTERNET SOFTWARE” companies have a potential upside of 15.13%. Given Arlo Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe Arlo Technologies is more favorable than its rivals.

Volatility & Risk

Arlo Technologies has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, Arlo Technologies’ rivals have a beta of 1.18, meaning that their average share price is 18% more volatile than the S&P 500.

Summary

Arlo Technologies beats its rivals on 9 of the 13 factors compared.

Arlo Technologies Company Profile

Arlo Technologies, Inc., together with its subsidiaries, provides a cloud-based platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. The company offers Arlo Essential Cameras and Doorbells (2nd Generation) delivers smart home protection, including automated privacy shield, 180-degree field of view, and 2K video resolution; Arlo Home Security System, an all-in-one multi-sensor that provides access to security experts for monitoring and responding to emergency situations; Arlo Pro 5S, a wireless 2K video resolution security camera; Arlo Go 2, a camera for monitoring remote areas, large properties, construction sites, vacation homes, boat or RV slips, and hard-to-access areas; Arlo Ultra 2 provides 4K video with HDR, an ultra-wide, 180-degree field of view, auto zoom and tracking on moving objects, and color night vision; and Arlo Floodlight Camera, a wire-free floodlight camera. It provides security system accessories, charging accessories, and mounts. In addition, the company offers Arlo Secure subscriptions, including emergency response secure plus plan; 2K secure plan and 4K secure plus plan cloud-based video recording; unlimited cameras; advanced object detection; smart interactive notifications; smoke and CO alarm detection; cloud-based activity zone; call a friend; and 24/7 priority support and professional monitoring services; Arlo Total Security, a subscription which provides 24/7 professional monitoring and security hardware; Arlo Safe, a personal safety app that offers one-touch emergency response, family safety, and crash detection and response services; and Arlo SmartCloud, a SaaS solution that delivers security cloud services for business. It sells its products through retailers, wholesale distributors, broadcast channels, wireless carriers, and security solution providers, as well as through its website. Arlo Technologies, Inc. was incorporated in 2018 and is headquartered in Carlsbad, California.