Contrasting Arlo Technologies (ARLO) & Its Rivals

Arlo Technologies (NYSE:ARLO) is one of 376 publicly-traded companies in the “Electronic Equipment, Instruments & Components” industry, but how does it contrast to its peers? We will compare Arlo Technologies to related companies based on the strength of its risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Arlo Technologies	$529.30 million	$14.93 million	55.84
Arlo Technologies Competitors	$115.53 billion	$173.71 million	5.28

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

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	4.11%	16.08%	6.95%
Arlo Technologies Competitors	-139.91%	-19.77%	-5.96%

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 company insiders. Comparatively, 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Arlo Technologies and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arlo Technologies	0	2	5	0	2.71
Arlo Technologies Competitors	2048	7630	10466	668	2.47

Arlo Technologies currently has a consensus target price of $20.40, suggesting a potential upside of 66.07%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 33.03%. Given Arlo Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Arlo Technologies is more favorable than its peers.

Volatility and Risk

Arlo Technologies has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Arlo Technologies’ peers have a beta of -0.30, suggesting that their average share price is 130% less 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 develops and sells connected home security products and services. Its offerings include indoor and outdoor security cameras, video doorbells, floodlight cameras and related smart-home devices, which let users monitor their properties through a mobile app. The company also offers subscription services, including cloud video storage, enhanced security features and professional monitoring. Arlo’s products and services are available in markets including North America, Europe and Australia.