Head-To-Head Analysis: Veralto (NYSE:VLTO) & Arlo Technologies (NYSE:ARLO)

Arlo Technologies (NYSE:ARLO) and Veralto (NYSE:VLTO) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares Arlo Technologies and Veralto’s 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%
Veralto	17.35%	34.76%	13.38%

Valuation & Earnings

This table compares Arlo Technologies and Veralto”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arlo Technologies	$529.30 million	2.71	$14.93 million	$0.27	48.97
Veralto	$5.50 billion	4.18	$940.00 million	$3.96	23.84

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Arlo Technologies and Veralto, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arlo Technologies	0	2	5	0	2.71
Veralto	0	4	6	0	2.60

Arlo Technologies presently has a consensus target price of $20.60, indicating a potential upside of 55.81%. Veralto has a consensus target price of $112.50, indicating a potential upside of 19.18%. Given Arlo Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Arlo Technologies is more favorable than Veralto.

Volatility and Risk

Arlo Technologies has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, Veralto has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Insider & Institutional Ownership

83.2% of Arlo Technologies shares are held by institutional investors. Comparatively, 91.3% of Veralto shares are held by institutional investors. 2.9% of Arlo Technologies shares are held by company insiders. Comparatively, 0.4% of Veralto shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Veralto beats Arlo Technologies on 9 of the 14 factors compared between the two stocks.

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.

About Veralto

Veralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color services worldwide. It operates through two segments, Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment offers precision instrumentation and water treatment technologies to measure, analyze, and treat water in residential, commercial, municipal, industrial, research, and natural resource applications through the Hach, Trojan Technologies, and ChemTreat brands. This segment provides water solutions, including chemical reagents, services, and digital solutions. The PQI segment offers inline printing solutions for products and packaging with marking and coding systems; marking and coding for packaged goods and related consumables; design software and imaging systems for the creation of new packaging designs; color management solutions for printed packages and consumer and industrial products; color standard services for the design industry; and a software solution that provides digital asset management, marketing resource management, and product information management. This segment sells its products and services through the Videojet, Linx, Esko, X-Rite, and Pantone brands to regulated industries, including municipal utilities, food and beverage, pharmaceutical, and industrials. The company was formerly known as DH EAS Holding Corp. and changed its name to Veralto Corporation in February 2023. Veralto Corporation was incorporated in 2022 and is headquartered in Waltham, Massachusetts.