Head to Head Contrast: Riskified (NYSE:RSKD) & Arlo Technologies (NYSE:ARLO)

Riskified (NYSE:RSKD) and Arlo Technologies (NYSE:ARLO) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Earnings and Valuation

This table compares Riskified and Arlo Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riskified	$344.64 million	1.74	-$27.57 million	($0.17)	-23.79
Arlo Technologies	$529.30 million	2.83	$14.93 million	$0.13	107.81

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Riskified	-8.00%	-5.63%	-4.24%
Arlo Technologies	2.82%	10.76%	4.03%

Insider and Institutional Ownership

59.0% of Riskified shares are held by institutional investors. Comparatively, 83.2% of Arlo Technologies shares are held by institutional investors. 17.4% of Riskified shares are held by insiders. Comparatively, 5.2% of Arlo Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Riskified has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Arlo Technologies has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Riskified and Arlo Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riskified	1	3	3	0	2.29
Arlo Technologies	0	2	3	0	2.60

Riskified presently has a consensus target price of $5.96, suggesting a potential upside of 47.30%. Arlo Technologies has a consensus target price of $23.33, suggesting a potential upside of 66.49%. Given Arlo Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Arlo Technologies is more favorable than Riskified.

Summary

Arlo Technologies beats Riskified on 12 of the 13 factors compared between the two stocks.

About Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts. The company serves direct-to-consumer brands, online-only retailers, omnichannel retailers, online marketplaces, and e-commerce service providers in various industries, such as payments, money transfer and crypto, tickets and travel, electronics, home, and fashion and luxury goods. Riskified Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.

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.