Arlo Technologies (NYSE:ARLO) vs. Orbit International (OTCMKTS:ORBT) Critical Survey

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

Institutional and Insider Ownership

83.2% of Arlo Technologies shares are held by institutional investors. 2.9% of Arlo Technologies shares are held by company insiders. Comparatively, 11.3% of Orbit International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Arlo Technologies has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Orbit International has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arlo Technologies	$529.30 million	3.08	$14.93 million	$0.27	55.54
Orbit International	$22.45 million	0.57	-$5.03 million	($1.32)	-2.77

Arlo Technologies has higher revenue and earnings than Orbit International. Orbit International 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 Arlo Technologies and Orbit International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arlo Technologies	5.47%	18.66%	7.44%
Orbit International	-19.24%	-34.08%	-19.85%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Arlo Technologies and Orbit International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arlo Technologies	0	2	6	0	2.75
Orbit International	0	0	0	0	0.00

Arlo Technologies currently has a consensus target price of $20.67, indicating a potential upside of 37.82%. Given Arlo Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Arlo Technologies is more favorable than Orbit International.

Summary

Arlo Technologies beats Orbit International on 13 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 Orbit International

Orbit International Corp. engages in the design, manufacture, and sale of electronic components and subsystems, and commercial and custom power units for prime contractors, government procurement agencies, and research and development laboratories worldwide. The company operates in two segments, Electronics Group and Power Group. The Electronics Group segment designs, manufactures, and sells customized electronic components and subsystems. This segment offers remote control units, intercommunication panels, displays, keyboards, keypads and pointing devices, operator control trays, and command display units, as well as provides LCD display modules, military simulation and training bezels, electronic control assemblies, and multi-function displays design and enhancement services. The Power Group segment designs and manufactures commercial power units, AC power, frequency converters, uninterruptible power supplies, armament systems, and commercial-off-the-shelf power solutions, as well as inverters. The company was formerly known as Orbit Instrument Corp. and changed its name to Orbit International Corp. in July 1991. Orbit International Corp. was founded in 1957 and is based in Hauppauge, New York.