UI vs ARLO

For growth investors, Ubiquiti Inc.

(UI) is the stronger pick with 33. 4% revenue growth year-over-year, versus 3. 6% for Arlo Technologies, Inc. (ARLO). Ubiquiti Inc. (UI) offers the better valuation at 87. 4x trailing P/E (63. 9x forward), making it the more compelling value choice. Analysts rate Arlo Technologies, Inc. (ARLO) a "Buy" — based on 10 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, Ubiquiti Inc.

(UI) is the cheapest at 87. 4x versus Arlo Technologies, Inc. at 104. 1x. On forward P/E, Arlo Technologies, Inc. is actually cheaper at 18. 1x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Ubiquiti Inc.

(UI) delivered a total return of +290. 7%, compared to +125. 2% for Arlo Technologies, Inc. (ARLO). Over 10 years, the gap is even starker: UI returned +26. 6% 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), Arlo Technologies, Inc.

(ARLO) is the lower-risk stock at 1. 48β versus Ubiquiti Inc. 's 2. 10β — meaning UI is approximately 42% more volatile than ARLO relative to the S&P 500. On balance sheet safety, Arlo Technologies, Inc. (ARLO) carries a lower debt/equity ratio of 5% versus 45% for Ubiquiti Inc. — giving it more financial flexibility in a downturn.

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

(UI) is pulling ahead at 33. 4% 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 103. 1% for Ubiquiti Inc.. Over a 3-year CAGR, UI leads at 15. 0% 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.

Ubiquiti Inc.

(UI) is the more profitable company, earning 27. 7% net margin versus 2. 8% for Arlo Technologies, Inc. — meaning it keeps 27. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: UI leads at 32. 5% versus 1. 1% for ARLO. At the gross margin level — before operating expenses — ARLO leads at 44. 0%, 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 63. 9x for Ubiquiti Inc. — 45. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARLO: 20. 1% to $17. 50.

In this comparison, UI (0.

2% yield) pays a dividend. ARLO does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Arlo Technologies, Inc.

(ARLO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Ubiquiti Inc. (UI) carries a higher beta of 2. 10 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ARLO: -34. 1%, UI: +26. 6%), 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 (UI (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: UI is a mid-cap high-growth stock; ARLO is a small-cap quality compounder stock. 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.