ALRM vs ARLO

For growth investors, Alarm.

com Holdings, Inc. (ALRM) is the stronger pick with 7. 6% revenue growth year-over-year, versus 3. 6% for Arlo Technologies, Inc. (ARLO). Alarm. com Holdings, Inc. (ALRM) offers the better valuation at 18. 5x trailing P/E (16. 3x forward), making it the more compelling value choice. Analysts rate Alarm. com Holdings, Inc. (ALRM) a "Buy" — based on 19 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, Alarm.

com Holdings, Inc. (ALRM) is the cheapest at 18. 5x versus Arlo Technologies, Inc. at 104. 1x. On forward P/E, Alarm. com Holdings, Inc. is actually cheaper at 16. 3x.

Over the past 5 years, Arlo Technologies, Inc.

(ARLO) delivered a total return of +125. 2%, compared to -45. 9% for Alarm. com Holdings, Inc. (ALRM). Over 10 years, the gap is even starker: ALRM returned +108. 5% versus ARLO's -34. 1%. 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), Alarm.

com Holdings, Inc. (ALRM) is the lower-risk stock at 1. 17β versus Arlo Technologies, Inc. 's 1. 48β — meaning ARLO is approximately 26% more volatile than ALRM relative to the S&P 500. On balance sheet safety, Arlo Technologies, Inc. (ARLO) carries a lower debt/equity ratio of 5% versus 127% for Alarm. com Holdings, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Alarm.

com Holdings, Inc. (ALRM) is pulling ahead at 7. 6% 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 7. 4% for Alarm. com Holdings, Inc.. Over a 3-year CAGR, ALRM leads at 6. 3% 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.

Alarm.

com Holdings, Inc. (ALRM) is the more profitable company, earning 13. 1% net margin versus 2. 8% for Arlo Technologies, Inc. — meaning it keeps 13. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ALRM leads at 13. 4% versus 1. 1% for ARLO. At the gross margin level — before operating expenses — ALRM leads at 63. 1%, 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, Alarm.

com Holdings, Inc. (ALRM) trades at 16. 3x forward P/E versus 18. 1x for Arlo Technologies, Inc. — 1. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARLO: 20. 1% to $17. 50.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Alarm.

com Holdings, Inc. (ALRM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 17), +108. 5% 10Y return). Both have compounded well over 10 years (ALRM: +108. 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 (ALRM (Technology) and ARLO (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

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.