monday.com (NASDAQ:MNDY) & Automatic Data Processing (NASDAQ:ADP) Head to Head Survey

Automatic Data Processing (NASDAQ:ADP) and monday.com (NASDAQ:MNDY) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.

Earnings & Valuation

This table compares Automatic Data Processing and monday.com”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Automatic Data Processing	$20.56 billion	5.07	$4.08 billion	$10.13	25.47
monday.com	$971.99 million	7.62	$32.37 million	$1.23	118.56

Automatic Data Processing has higher revenue and earnings than monday.com. Automatic Data Processing is trading at a lower price-to-earnings ratio than monday.com, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

80.0% of Automatic Data Processing shares are held by institutional investors. Comparatively, 73.7% of monday.com shares are held by institutional investors. 0.2% of Automatic Data Processing shares are held by insiders. Comparatively, 22.3% of monday.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Automatic Data Processing and monday.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Automatic Data Processing	19.79%	70.63%	7.27%
monday.com	5.58%	5.99%	3.64%

Risk and Volatility

Automatic Data Processing has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, monday.com has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Automatic Data Processing and monday.com, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Automatic Data Processing	2	9	2	0	2.00
monday.com	1	3	22	1	2.85

Automatic Data Processing presently has a consensus target price of $306.42, suggesting a potential upside of 18.78%. monday.com has a consensus target price of $259.48, suggesting a potential upside of 77.94%. Given monday.com’s stronger consensus rating and higher probable upside, analysts plainly believe monday.com is more favorable than Automatic Data Processing.

Summary

monday.com beats Automatic Data Processing on 8 of the 15 factors compared between the two stocks.

About Automatic Data Processing

Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. Its offerings include payroll services, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solution to businesses through a co-employment model. This segment offers employee benefits, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. Automatic Data Processing, Inc. was founded in 1949 and is headquartered in Roseland, New Jersey.

About monday.com

monday.com Ltd., together with its subsidiaries, develops software applications in the United States, Europe, the Middle East, Africa, the United Kingdom, and internationally. The company provides Work OS, a cloud-based visual work operating system that consists of modular building blocks used and assembled to create software applications and work management tools. Its products include monday work management that manages workflows, projects, and portfolios for team collaboration and productivity; monday sales CRM, whcih tracks and manages various sales cycle; monday dev that builds agile product and software development workflows; WorkCanvas, a digital whiteboard; and WorkForms, which allows users to create personalized forms or surveys and gain organizational insights. It serves organizations, educational or government institution, and distinct business unit of an organization. The company was formerly known as DaPulse Labs Ltd. and changed its name to monday.com Ltd. in December 2017. monday.com Ltd. was incorporated in 2012 and is headquartered in Tel Aviv, Israel.