Arlo Technologies (ARLO) & Its Competitors Critical Contrast

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Arlo Technologies and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arlo Technologies	0	0	3	1	3.25
Arlo Technologies Competitors	1369	9852	19930	495	2.62

Arlo Technologies currently has a consensus price target of $23.00, indicating a potential upside of 32.06%. As a group, “INTERNET SOFTWARE” companies have a potential upside of 15.77%. Given Arlo Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Arlo Technologies is more favorable than its peers.

Profitability

This table compares Arlo Technologies and its peers’ 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	-194.83%	-65.82%	-6.58%

Earnings & Valuation

This table compares Arlo Technologies and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Arlo Technologies	$510.89 million	-$30.50 million	-248.80
Arlo Technologies Competitors	$2.14 billion	$341.19 million	4.42

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

Institutional and Insider Ownership

83.2% of Arlo Technologies shares are owned by institutional investors. Comparatively, 60.8% of shares of all “INTERNET SOFTWARE” companies are owned by institutional investors. 3.8% of Arlo Technologies shares are owned by insiders. Comparatively, 18.2% of shares of all “INTERNET SOFTWARE” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Arlo Technologies has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Arlo Technologies’ peers have a beta of 1.19, meaning that their average stock price is 19% more volatile than the S&P 500.

Summary

Arlo Technologies beats its peers 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.