Sifting through countless of stocks in the Electronic Equipment, Instruments & Components industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Arlo Technologies, Inc. or Cognex Corporation because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Arlo Technologies, Inc. and Cognex Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Arlo Technologies, Inc. and Cognex Corporation

Arlo Technologies, Inc., together with its subsidiaries, provides cloud-based platform services 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 also 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.

Cognex Corporation provides machine vision products that capture and analyze visual information to automate manufacturing and distribution tasks worldwide. Its machine vision products are used to automate the manufacturing and tracking of discrete items, including mobile phones, automotive components, and e-commerce packages by locating, identifying, inspecting, and measuring them. The company offers VisionPro software, a suite of patented vision tools for advanced programming; In-Sight product line of vision systems and sensors; QuickBuild that allows customers to build vision applications with a graphical, flowchart-based programming interface; and DataMan, an image-based barcode readers and barcode verifiers; vision accessories, such as industrial cameras, lenses, lighting, vision controllers, frame grabbers, and I/O cards. It sells its products to automotive, logistics, consumer electronics, medical-related, semiconductor, consumer products, and food and beverage industries through a network of distributors and integrators. The company was incorporated in 1981 and is headquartered in Natick, Massachusetts.

Latest Electronic Equipment, Instruments & Components and Arlo Technologies, Inc., Cognex Corporation Stock News

As of December 5, 2025, Arlo Technologies, Inc. had a $1.5 billion market capitalization, compared to the Electronic Equipment, Instruments & Components median of $718.2 million. Arlo Technologies, Inc.’s stock is up 29.7% in 2025, up 0.1% in the previous five trading days and up 13.63% in the past year.

Currently, Arlo Technologies, Inc.’s price-earnings ratio is 426.8. Arlo Technologies, Inc.’s trailing 12-month revenue is $509.6 million with a 0.8% net profit margin. Year-over-year quarterly sales growth most recently was 1.3%. Analysts expect adjusted earnings to reach $0.656 per share for the current fiscal year. Arlo Technologies, Inc. does not currently pay a dividend.

As of December 5, 2025, Cognex Corporation had a $6.4 billion market cap, putting it in the 73rd percentile of all stocks. Cognex Corporation’s stock is up 7.1% in 2025, up 0.8% in the previous five trading days and down 2.14% in the past year.

Currently, Cognex Corporation’s price-earnings ratio is 59.1. Cognex Corporation’s trailing 12-month revenue is $971.7 million with a 11.3% net profit margin. Year-over-year quarterly sales growth most recently was 18.0%. Analysts expect adjusted earnings to reach $0.961 per share for the current fiscal year. Cognex Corporation currently has a 0.9% dividend yield.

How We Compare Arlo Technologies, Inc. and Cognex Corporation Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Arlo Technologies, Inc. and Cognex Corporation’s stock grades to see how they measure up against one another.

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Arlo Technologies, Inc. and Cognex Corporation Stock Value Grades

Company	Ticker	Value
Arlo Technologies, Inc.	ARLO	F
Cognex Corporation	CGNX	F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Arlo Technologies, Inc. has a Value Score of 11, which is Ultra Expensive. Cognex Corporation has a Value Score of 15, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Arlo Technologies, Inc. or Cognex Corporation has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Arlo Technologies, Inc. or Cognex Corporation is the better investment when it comes to value.

Arlo Technologies, Inc. and Cognex Corporation Growth Grades

Company	Ticker	Growth
Arlo Technologies, Inc.	ARLO	C
Cognex Corporation	CGNX	A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Arlo Technologies, Inc. has a Growth Score of 53, which is Average. Cognex Corporation has a Growth Score of 81, which is Very Strong.

The Growth Grade Winner: Cognex Corporation

As you can clearly see from the Growth Grade breakdown above, Cognex Corporation has a more attractive growth grade than Arlo Technologies, Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Cognex Corporation could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Arlo Technologies, Inc. and Cognex Corporation’s Momentum Grades

Company	Ticker	Momentum
Arlo Technologies, Inc.	ARLO	C
Cognex Corporation	CGNX	C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Arlo Technologies, Inc. has a Momentum Score of 51, which is Average. Cognex Corporation has a Momentum Score of 41, which is Average.

The Momentum Stock Winner: No Clear Winner

Neither Arlo Technologies, Inc. or Cognex Corporation has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Arlo Technologies, Inc. or Cognex Corporation is the better investment when it comes to momentum.

Other Arlo Technologies, Inc. and Cognex Corporation Grades

In addition to Momentum, Value and Growth, A+ Investor also provides grades for Estimate Revisions and Quality.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Arlo Technologies, Inc. and Cognex Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Arlo Technologies, Inc. or Cognex Corporation Stock?

Overall, Arlo Technologies, Inc. stock has a Value Score of 11, Growth Score of 53 and Momentum Score of 51.

Cognex Corporation stock has a Value Score of 15, Growth Score of 81 and Momentum Score of 41.

Comparing Arlo Technologies, Inc. and Cognex Corporation’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.