Analyzing Knowles (KN) & Arlo Technologies (ARLO)

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

Analyst Recommendations

This is a summary of current ratings and price targets for Knowles and Arlo Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Knowles 1 2 3 0 2.33
Arlo Technologies 0 2 4 0 2.67

Knowles presently has a consensus price target of $17.60, suggesting a potential upside of 7.19%. Arlo Technologies has a consensus price target of $29.00, suggesting a potential upside of 106.41%. Given Arlo Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Arlo Technologies is more favorable than Knowles.

Profitability

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

Net Margins Return on Equity Return on Assets
Knowles 13.12% 6.08% 4.37%
Arlo Technologies N/A N/A N/A

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Knowles $744.20 million 1.99 $68.30 million $0.70 23.46
Arlo Technologies $370.65 million 2.76 $6.54 million N/A N/A

Knowles has higher revenue and earnings than Arlo Technologies.

Summary

Knowles beats Arlo Technologies on 5 of the 9 factors compared between the two stocks.

Knowles Company Profile

Knowles Corporation designs, manufactures, and sells micro-acoustic, audio processing, and precision device solutions to the mobile consumer electronics, industrial, defense, aerospace medical, and telecommunications markets worldwide. The company operates in two segments, Audio and Precision Devices. The Audio segment designs and manufactures audio products, including microphones and balanced armature speakers, signal processing technologies, and software and algorithms used in applications that serve the mobile, ear, and Internet of Things markets. This segment also offers analog and digital micro-electro-mechanical systems, and electret condenser and smart microphones; and ultrasonic sensors and acoustic processors, as well as transducer products used primarily in hearing health and headset applications. The Precision Devices segment designs and delivers engineered capacitors and radio frequency devices for technically demanding applications, such as power supplies, radar, medical implants, and satellites for the industrial, defense, aerospace, medical, and telecommunications markets. The company also provides single layer electronic components to the radio frequency device, microwave, telecommunication, fiber optics, defense, and aerospace markets. It sells its products directly to original equipment manufacturers and to their contract manufacturers and suppliers, as well as through distributors. Knowles Corporation was founded in 1946 and is headquartered in Itasca, Illinois.

Arlo Technologies Company Profile

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.

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