Arlo Technologies (NYSE:ARLO) and Elastic (NYSE:ESTC) Head to Head Comparison

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

Risk & Volatility

Arlo Technologies has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Elastic has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Arlo Technologies and Elastic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arlo Technologies	0	2	3	0	2.60
Elastic	1	11	17	0	2.55

Arlo Technologies currently has a consensus price target of $23.00, indicating a potential upside of 63.61%. Elastic has a consensus price target of $105.71, indicating a potential upside of 47.72%. Given Arlo Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Arlo Technologies is more favorable than Elastic.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arlo Technologies	$510.89 million	2.92	-$30.50 million	$0.03	468.60
Elastic	$1.48 billion	5.08	-$108.11 million	($1.03)	-69.47

Arlo Technologies has higher earnings, but lower revenue than Elastic. Elastic 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 Elastic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arlo Technologies	0.84%	2.00%	0.71%
Elastic	-6.79%	-2.02%	-0.74%

Insider & Institutional Ownership

83.2% of Arlo Technologies shares are held by institutional investors. Comparatively, 97.0% of Elastic shares are held by institutional investors. 3.8% of Arlo Technologies shares are held by company insiders. Comparatively, 12.7% of Elastic 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

Arlo Technologies beats Elastic 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 Elastic

Elastic N.V., a data analytics company, delivers solutions designed to run in public or private clouds in multi-cloud environments. It primarily offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization on that data. The company's Elastic Stack product portfolio comprises Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Elastic Agent that offers integrated host protection and central management services; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems from a multitude of sources simultaneously. It also provides software solutions on the Elastic Stack that address cases, including search applications, workplace search, logs, metrics, application performance monitoring, synthetic monitoring, security information and event management (SIEM), endpoint security, extended detection and response, and cloud security. The company was incorporated in 2012 and is based in Amsterdam, the Netherlands.