Analyzing Arlo Technologies (NYSE:ARLO) & Travis Perkins (OTCMKTS:TPRKY)

Travis Perkins (OTCMKTS:TPRKY) and Arlo Technologies (NYSE:ARLO) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Institutional and Insider Ownership

83.2% of Arlo Technologies shares are held by institutional investors. 2.9% of Arlo Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Travis Perkins and Arlo Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travis Perkins	0	0	0	0	N/A
Arlo Technologies	0	0	4	0	3.00

Arlo Technologies has a consensus price target of $15.25, indicating a potential upside of 42.26%. Given Arlo Technologies’ higher probable upside, analysts clearly believe Arlo Technologies is more favorable than Travis Perkins.

Valuation and Earnings

This table compares Travis Perkins and Arlo Technologies’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travis Perkins	N/A	N/A	N/A	$1.12	8.08
Arlo Technologies	$491.18 million	2.10	-$22.04 million	($0.24)	-44.67

Travis Perkins has higher earnings, but lower revenue than Arlo Technologies. Arlo Technologies is trading at a lower price-to-earnings ratio than Travis Perkins, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Travis Perkins and Arlo Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Travis Perkins	N/A	N/A	N/A
Arlo Technologies	-4.49%	-22.27%	-7.26%

About Travis Perkins

Travis Perkins plc engages in distribution of building material products in the United Kingdom. It operates through Merchanting and Toolstation segments. The company offers tools and building supplies. It also distributes pipeline products, as well as supplies managed services, and commercial and industrial heating and cooling solutions. In addition, the company provides in specialist civils and drainage solutions; and air-conditioning and refrigeration products and heat pumps. Further, it provides insulation and interior building products to interior building specialists, contractors, and builders; and kitchens and joinery products. Additionally, the company manufactures and supplies staircases, i-joists, precision floor kits, painted MDF profiles, and door kits/sets. The company markets its products under Travis Perkins, Toolstation, BSS, Keyline, and CCF brands. It sells its products through branches and distribution centres, as well as online. Travis Perkins plc was founded in 1797 and is headquartered in Northampton, the United Kingdom.

About Arlo Technologies

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.