Financial Survey: Arlo Technologies (ARLO) and Its Peers

Arlo Technologies (NYSE:ARLO) is one of 377 publicly-traded companies in the “Electronic Equipment, Instruments & Components” industry, but how does it compare to its competitors? We will compare Arlo Technologies to related companies based on the strength of its profitability, earnings, analyst recommendations, institutional ownership, valuation, risk and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Arlo Technologies and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arlo Technologies	0	2	6	0	2.75
Arlo Technologies Competitors	2049	7620	10455	665	2.47

Arlo Technologies presently has a consensus target price of $21.33, suggesting a potential upside of 75.81%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 35.44%. Given Arlo Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Arlo Technologies is more favorable than its competitors.

Risk & Volatility

Arlo Technologies has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, Arlo Technologies’ competitors have a beta of -0.30, meaning that their average share price is 130% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Arlo Technologies	$529.30 million	$14.93 million	55.15
Arlo Technologies Competitors	$4.00 billion	$172.92 million	4.83

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arlo Technologies	5.20%	17.29%	7.12%
Arlo Technologies Competitors	-160.23%	-30.21%	-6.88%

Institutional & Insider Ownership

83.2% of Arlo Technologies shares are held by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are held by institutional investors. 2.9% of Arlo Technologies shares are held by insiders. Comparatively, 16.1% of shares of all “Electronic Equipment, Instruments & Components” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

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

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.