Critical Review: Asana (NYSE:ASAN) versus monday.com (NASDAQ:MNDY)

monday.com (NASDAQ:MNDY – Get Free Report) and Asana (NYSE:ASAN – Get Free Report) are both mid-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for monday.com and Asana, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
monday.com 0 13 12 0 2.48
Asana 3 7 4 0 2.07

monday.com presently has a consensus target price of $107.35, suggesting a potential upside of 14.15%. Asana has a consensus target price of $9.95, suggesting a potential downside of 11.48%. Given monday.com’s stronger consensus rating and higher probable upside, analysts clearly believe monday.com is more favorable than Asana.

Valuation & Earnings

This table compares monday.com and Asana”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
monday.com $1.23 billion 3.91 $118.74 million $2.35 40.02
Asana $790.81 million 3.26 -$189.02 million ($0.66) -17.04

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

Risk & Volatility

monday.com has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Asana has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
monday.com 8.87% 9.09% 4.73%
Asana -18.62% -80.33% -14.19%

Institutional and Insider Ownership

73.7% of monday.com shares are held by institutional investors. Comparatively, 26.2% of Asana shares are held by institutional investors. 22.3% of monday.com shares are held by company insiders. Comparatively, 87.5% of Asana shares are held by company 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

monday.com beats Asana on 13 of the 14 factors compared between the two stocks.

About monday.com

(Get Free Report)

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.

About Asana

(Get Free Report)

Asana, Inc., together with its subsidiaries, operates a work management platform for individuals, team leads, and executives in the United States and internationally. Its platform helps organizations to orchestrate work from daily tasks to cross-functional strategic initiatives; manage work across a portfolio of projects or workflows, see progress against goals, identify bottlenecks, resource constraints, and milestones; and communicate company-wide goals, monitor status, and oversee work across projects and portfolios to gain real-time insights. The company serves customers in various industries, such as technology, retail, education, non-profit, government, healthcare, hospitality, media, manufacturing, professional services, and financial services. The company was formerly known as Smiley Abstractions, Inc. and changed its name to Asana, Inc. in July 2009. Asana, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

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