Critical Survey: Technicolor (TCLRY) versus Arlo Technologies (ARLO)

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

Insider & Institutional Ownership

25.3% of Arlo Technologies shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Technicolor and Arlo Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Technicolor 0 0 0 0 N/A
Arlo Technologies 0 2 4 0 2.67

Arlo Technologies has a consensus price target of $29.00, suggesting a potential upside of 222.22%. Given Arlo Technologies’ higher possible upside, analysts clearly believe Arlo Technologies is more favorable than Technicolor.

Profitability

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

Net Margins Return on Equity Return on Assets
Technicolor N/A N/A N/A
Arlo Technologies -7.22% -17.19% -8.25%

Valuation & Earnings

This table compares Technicolor and Arlo Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Technicolor $4.78 billion 0.10 -$194.41 million N/A N/A
Arlo Technologies $370.65 million 1.77 $6.54 million N/A N/A

Arlo Technologies has lower revenue, but higher earnings than Technicolor.

Summary

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

Technicolor Company Profile

Technicolor SA provides various communication and video technologies, finished products, systems, equipment, and services for businesses and professionals in the entertainment and media industries worldwide. It operates through two segments, Entertainment Services, and Connected Home. The Entertainment Services segment provides production services, such as digital video and sound postproduction services; visual effects and animation services for feature films, TV series, advertising, and video games; computer generated imagery animation services; on-set, color correction, VFX integration, and sound services; and replicates, packages, and distributes video, game and music DVD, Blu-ray, and CD discs, as well as offers turnkey integrated supply-chain solutions. This segment serves film studios, TV broadcasters, independent content producers, game developers/publishers, and OTT service providers. The Connected Home segment designs and supplies set-top boxes, broadband modems and gateways, and Internet of Things connected devices, as well as multi-device communication software, smart home applications, and related professional services. This segment offers its solutions to Pay-TV operators and network service providers. Technicolor SA was founded in 1953 and is headquartered in Issy-les-Moulineaux, France.

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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