Arlo Technologies (NYSE: SNE) and Sony (NYSE:SNE) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arlo Technologies $370.65 million 2.92 N/A N/A N/A
Sony $77.15 billion 0.93 $4.42 billion $3.29 17.33

Sony has higher revenue and earnings than Arlo Technologies.

Dividends

Sony pays an annual dividend of $0.19 per share and has a dividend yield of 0.3%. Arlo Technologies does not pay a dividend. Sony pays out 5.8% of its earnings in the form of a dividend. Sony has increased its dividend for 2 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Arlo Technologies N/A N/A N/A
Sony 7.32% 16.74% 3.18%

Insider & Institutional Ownership

7.6% of Sony shares are held by institutional investors. 7.0% of Sony shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Arlo Technologies and Sony, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arlo Technologies 0 2 4 0 2.67
Sony 0 3 2 0 2.40

Arlo Technologies presently has a consensus target price of $29.00, suggesting a potential upside of 94.63%. Sony has a consensus target price of $85.29, suggesting a potential upside of 49.63%. Given Arlo Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Arlo Technologies is more favorable than Sony.

Summary

Sony beats Arlo Technologies on 8 of the 13 factors compared between the two stocks.

About Arlo Technologies

Arlo Technologies, Inc. provides smart connected devices to monitor the environments in real-time with a Wi-Fi or a cellular network Internet connection in the Americas, Europe, the Middle-East and Africa, and the Asia Pacific regions. It offers Arlo Security Camera, a battery-operated Wi-Fi security camera; Arlo Q and Arlo Q Plus, an indoor wired solution that allow users to monitor their surroundings; Arlo Pro, a battery-operated weather-resistant Wi-Fi camera; Arlo Go, an LTE-enabled wire-free camera that provides untethered mobile monitoring; and Arlo Baby, a baby monitor with air quality and temperature sensors, motion and audio detection, and advanced night vision. The company also offers Arlo Pro 2, a battery-operated weather-resistant Wi-Fi camera with advancements in sound and motion detection; Arlo Security Light, a wire-free lighting product; and accessories, such as charging accessories, device mounts, and device skins. In addition, it provides Arlo app that allow users to access a live view of their camera feeds; and prepaid services, including even-day cloud video storage with the ability to connect up to five cameras and 90 days of customer support. The company offers its products through retail channels, wholesale distribution and wireless carrier channels, and paid subscription services through in-app purchases. Arlo Technologies, Inc. was incorporated in 2018 and is headquartered in San Jose, California. Arlo Technologies, Inc. is a subsidiary of NETGEAR, Inc.

About Sony

Sony Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets worldwide. The company offers network services related to games, videos, and music contents; and home and portable game consoles, packaged software, and peripheral devices, as well as broadcast/professional, integrated circuit card technology, and medical and imaging device solutions. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications based on animation titles, and various services for music and visual products. In addition, the company offers live-action and animated motion pictures, as well as scripted and unscripted series, daytime serials, game shows, animated series, television movies, and miniseries and other television programs; operates a visual effects and animation unit; manages a studio facility; and operates television and digital networks. Further, it researches, develops, designs, produces, markets, distributes, sells, and services video and sound products; interchangeable lens, compact digital, and consumer and professional video cameras; display products, such as projectors and medical equipment; mobile phones, tablets, accessories, and applications; metal oxide semiconductor image sensors, charge-coupled devices, large-scale integration systems, and other semiconductors. Additionally, the company offers Internet broadband network services; creates and distributes content for various electronics product platforms, such as PCs and mobile phones; and provides life and non-life insurance, banking, and other services, as well as batteries, recording media, and storage media products. The company was formerly known as Tokyo Tsushin Kogyo Kabushiki Kaisha and changed its name to Sony Corporation in January 1958. Sony Corporation was founded in 1946 and is headquartered in Tokyo, Japan.

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