TUYA vs ARLO

For growth investors, Tuya Inc.

(TUYA) is the stronger pick with 29. 8% revenue growth year-over-year, versus 3. 6% for Arlo Technologies, Inc. (ARLO). Arlo Technologies, Inc. (ARLO) offers the better valuation at 104. 1x trailing P/E (18. 1x forward), making it the more compelling value choice. Analysts rate Tuya Inc. (TUYA) a "Buy" — based on 2 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Arlo Technologies, Inc.

(ARLO) is the cheapest at 104. 1x versus Tuya Inc. at 282. 4x. On forward P/E, Arlo Technologies, Inc. is actually cheaper at 18. 1x.

Over the past 5 years, Arlo Technologies, Inc.

(ARLO) delivered a total return of +125. 2%, compared to -85. 4% for Tuya Inc. (TUYA). Over 10 years, the gap is even starker: ARLO returned -34. 1% versus TUYA's -89. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Arlo Technologies, Inc.

(ARLO) is the lower-risk stock at 1. 48β versus Tuya Inc. 's 1. 80β — meaning TUYA is approximately 22% more volatile than ARLO relative to the S&P 500. On balance sheet safety, Tuya Inc. (TUYA) carries a lower debt/equity ratio of 0% versus 5% for Arlo Technologies, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Tuya Inc.

(TUYA) is pulling ahead at 29. 8% versus 3. 6% for Arlo Technologies, Inc. (ARLO). On earnings-per-share growth, the picture is similar: Arlo Technologies, Inc. grew EPS 145. 2% year-over-year, compared to 107. 7% for Tuya Inc.. Over a 3-year CAGR, ARLO leads at 2. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Arlo Technologies, Inc.

(ARLO) is the more profitable company, earning 2. 8% net margin versus 1. 7% for Tuya Inc. — meaning it keeps 2. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ARLO leads at 1. 1% versus -15. 9% for TUYA. At the gross margin level — before operating expenses — TUYA leads at 47. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Arlo Technologies, Inc.

(ARLO) trades at 18. 1x forward P/E versus 19. 2x for Tuya Inc. — 1. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TUYA: 53. 8% to $3. 69.

In this comparison, TUYA (2.

3% yield) pays a dividend. ARLO does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Tuya Inc.

(TUYA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (2. 3% yield). Both have compounded well over 10 years (TUYA: -89. 5%, ARLO: -34. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (TUYA (Technology) and ARLO (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: TUYA is a small-cap high-growth stock; ARLO is a small-cap quality compounder stock. TUYA pays a dividend while ARLO does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.