Analyzing Arlo Technologies (ARLO) & Its Peers

Arlo Technologies (NYSE:ARLO) is one of 253 publicly-traded companies in the “INTERNET SOFTWARE” industry, but how does it compare to its rivals? We will compare Arlo Technologies to similar businesses based on the strength of its earnings, risk, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Arlo Technologies	$510.89 million	-$30.50 million	-250.51
Arlo Technologies Competitors	$2.16 billion	$338.54 million	-4.37

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.

Institutional and Insider Ownership

83.2% of Arlo Technologies shares are held by institutional investors. Comparatively, 60.0% of shares of all “INTERNET SOFTWARE” companies are held by institutional investors. 5.2% of Arlo Technologies shares are held by company insiders. Comparatively, 17.5% of shares of all “INTERNET SOFTWARE” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

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	-194.89%	-65.84%	-6.60%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arlo Technologies	0	0	3	0	3.00
Arlo Technologies Competitors	1365	9810	19801	490	2.62

Arlo Technologies currently has a consensus target price of $23.00, suggesting a potential upside of 31.16%. As a group, “INTERNET SOFTWARE” companies have a potential upside of 17.47%. Given Arlo Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Arlo Technologies is more favorable than its rivals.

Risk & Volatility

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

Summary

Arlo Technologies beats its rivals on 8 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.