Digital Ally (NASDAQ:KUST – Get Free Report) and Arlo Technologies (NYSE:ARLO – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Risk and Volatility
Digital Ally has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Arlo Technologies has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.
Profitability
This table compares Digital Ally and Arlo Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digital Ally | -96.36% | -277.67% | -56.35% |
| Arlo Technologies | 5.20% | 17.29% | 7.12% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digital Ally | $13.75 million | 0.30 | -$6.67 million | ($16.87) | -0.04 |
| Arlo Technologies | $529.30 million | 2.64 | $14.93 million | $0.27 | 47.70 |
Arlo Technologies has higher revenue and earnings than Digital Ally. Digital Ally is trading at a lower price-to-earnings ratio than Arlo Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Digital Ally and Arlo Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digital Ally | 1 | 0 | 0 | 0 | 1.00 |
| Arlo Technologies | 0 | 2 | 5 | 0 | 2.71 |
Arlo Technologies has a consensus target price of $20.60, suggesting a potential upside of 59.94%. Given Arlo Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Arlo Technologies is more favorable than Digital Ally.
Institutional and Insider Ownership
4.2% of Digital Ally shares are owned by institutional investors. Comparatively, 83.2% of Arlo Technologies shares are owned by institutional investors. 0.0% of Digital Ally shares are owned by insiders. Comparatively, 2.9% of Arlo Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Arlo Technologies beats Digital Ally on 14 of the 14 factors compared between the two stocks.
About Digital Ally
Digital Ally, Inc. produces and sells digital video imaging, storage, and disinfectant and related safety products for use in law enforcement, security, and commercial applications in the United States and internationally. It operates through Video Solutions, Revenue Cycle Management, and Ticketing segments. The company offers in-car digital video mirror systems for law enforcement; in-car digital video event recorder systems for commercial fleets; a suite of data management web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information; miniature body-worn digital video systems for law enforcement and private security; and VuLink, an in-car device that enables an in-car digital audio/video system and a body worn digital audio/video camera system to automatically and simultaneously start recording. It also provides VuVault and EVO Web, a cloud-based evidence management system; FleetVU Manager, a web-based software for commercial fleet tracking and monitoring; ThermoVu, a non-contact temperature-screening instrument that measures temperature through the wrist and controls entry to facilities when temperature measurements exceed pre-determined parameters; and Shield disinfectants and cleansers, as well as other personal protective equipment and supplies, such as masks, gloves, sanitizer wipes, and electrostatic sprayer to health care workers and other consumers. In addition, the company offers working capital and back-office services, including insurance and benefit verification, medical treatment documentation and coding, and collections to healthcare organizations; and operates TicketSmarter.com, an online ticketing marketplace for ticket sales, partnerships, and ticket resale services for live events, including concerts, sporting events, theatres, and performing arts. Digital Ally, Inc. was founded in 2004 and is headquartered in Lenexa, Kansas.
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.
Receive News & Ratings for Digital Ally Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Digital Ally and related companies with MarketBeat.com's FREE daily email newsletter.
