Arlo Technologies (NYSE:ARLO) and Iveda Solutions (NASDAQ:IVDA) Critical Analysis

Iveda Solutions (NASDAQ:IVDA) and Arlo Technologies (NYSE:ARLO) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

4.3% of Iveda Solutions shares are owned by institutional investors. Comparatively, 83.2% of Arlo Technologies shares are owned by institutional investors. 5.1% of Iveda Solutions shares are owned by insiders. Comparatively, 2.9% of Arlo Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Iveda Solutions	-69.24%	-63.92%	-46.83%
Arlo Technologies	5.20%	17.29%	7.12%

Analyst Ratings

This is a summary of recent ratings and price targets for Iveda Solutions and Arlo Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iveda Solutions	1	0	0	0	1.00
Arlo Technologies	0	2	5	0	2.71

Arlo Technologies has a consensus target price of $20.60, suggesting a potential upside of 69.20%. Given Arlo Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Arlo Technologies is more favorable than Iveda Solutions.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iveda Solutions	$5.28 million	0.54	-$3.20 million	($0.54)	-0.42
Arlo Technologies	$529.30 million	2.50	$14.93 million	$0.27	45.09

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

Volatility and Risk

Iveda Solutions has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Arlo Technologies has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Summary

Arlo Technologies beats Iveda Solutions on 12 of the 13 factors compared between the two stocks.

About Iveda Solutions

Iveda Solutions, Inc. provides artificial intelligence (AI) and digital transformation technologies in the United States and Taiwan. The company offers IvedaAI, a deep-learning video analytics software and Sentir Video, a video surveillance solution for various kinds of applications. It also provides Cerebro IoT Platform, a software technology platform that integrates a multitude of disparate systems for central access and management of applications, subsystems, and devices, and IvedaSPS, a smart power solution utilizing in Cerebro IoT platform, and IvedaXpress, a system for pre-existing IP cameras and AI analytics for servers and IT department. In addition, the company offers Iveda Smart UVC, an AI vent for irradiating UV light and Iveda drone to perform certain functions from an aerial view. Further, it offers Utilus smart pole solution that consists of power and Internet with a communication network for the access and management of sensors and devices, as well as provides utility cabin, IoT sensors and devices and LAN switch products. The company serves airports, commercial buildings, government customers, data centers, shopping centers, hotels, banks, and safe city projects. Iveda Solutions, Inc. was founded in 2003 and is based in Mesa, Arizona.

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.