In the ever-evolving technology landscape, EPAM Systems, Inc. and monday.com Ltd. stand out as two influential players. EPAM, known for its comprehensive digital platform engineering and software development services, operates in the Information Technology Services sector. In contrast, monday.com specializes in cloud-based work management solutions. Both companies are leveraging innovation to expand their market presence, making them worthy of comparison. Join me as we delve deeper to uncover which of these companies presents the most compelling investment opportunity.
Table of contents
Company Overview
EPAM Overview
EPAM Systems, Inc. is a leading provider of digital platform engineering and software development services. Founded in 1993 and headquartered in Newtown, Pennsylvania, EPAM specializes in delivering tailored engineering solutions across various industries, including financial services, healthcare, and media. The company’s extensive portfolio encompasses requirements analysis, software development, and infrastructure management, enabling clients to enhance their operational efficiency and security. With a market capitalization of approximately $10.33B and over 61K employees, EPAM stands out for its commitment to innovation, leveraging advanced technologies like artificial intelligence and automation to meet evolving customer needs.
monday.com Overview
monday.com Ltd., founded in 2012 and based in Tel Aviv-Yafo, Israel, develops a cloud-based Work OS that empowers organizations to build and manage their workflows through customizable software applications. With a market capitalization of about $7.36B, the company serves a diverse range of clients, including educational institutions and government entities. The platform’s modular design allows businesses to tailor their project management and CRM tools to their specific requirements. With a workforce of around 2.5K, monday.com is positioned as a dynamic player in the software application industry, focusing on facilitating collaboration and efficiency.
Key similarities and differences
Both EPAM and monday.com operate within the technology sector but differ significantly in their business models. EPAM focuses on providing comprehensive engineering and consulting services, while monday.com emphasizes a modular, user-friendly software platform for work management. Despite their distinct approaches, both companies leverage technology to enhance client operations and drive innovation.
Income Statement Comparison
The following table compares the most recent income statements of EPAM Systems, Inc. and monday.com Ltd., providing key financial metrics to aid in your investment decision-making.
| Metric | EPAM Systems, Inc. | monday.com Ltd. |
|---|---|---|
| Market Cap | 10.33B | 7.36B |
| Revenue | 4.73B | 972M |
| EBITDA | 671M | 58M |
| EBIT | 545M | 40M |
| Net Income | 455M | 32M |
| EPS | 7.93 | 0.65 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In 2024, EPAM Systems demonstrated stable revenue growth, reaching $4.73B, which reflects a consistent performance compared to previous years. Their net income increased to $455M, showing improved margins. Conversely, monday.com reported revenue of $972M, a substantial increase from prior years, yet they continue to operate at a net income of $32M, indicating ongoing investment in growth despite challenges in profitability. Overall, EPAM maintains a stronger profitability profile, while monday.com shows promise in revenue growth, albeit with a focus on future scalability.
Financial Ratios Comparison
The following table provides a comparative analysis of the most recent financial ratios for Company A (EPAM Systems, Inc.) and Company B (monday.com Ltd.). Understanding these metrics will help in assessing the financial health and performance of each company.
| Metric | EPAM | monday.com |
|---|---|---|
| ROE | 12.52% | 3.14% |
| ROIC | 10.67% | -1.73% |
| P/E | 29.47 | -4839.47 |
| P/B | 3.69 | 11.41 |
| Current Ratio | 2.96 | 2.66 |
| Quick Ratio | 2.96 | 2.66 |
| D/E | 0.045 | 0.103 |
| Debt-to-Assets | 3.44% | 6.29% |
| Interest Coverage | 0 (no debt) | 0 (no debt) |
| Asset Turnover | 0.99 | 0.58 |
| Fixed Asset Turnover | 14.07 | 7.13 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of Financial Ratios
EPAM shows strong financial metrics with a solid ROE and ROIC, indicating effective management of equity and invested capital. The P/E ratio suggests a premium valuation, but the absence of debt enhances its risk profile. In contrast, monday.com struggles with significant negative earnings and lower asset utilization, raising concerns about operational efficiency and profitability. Investors should be cautious when considering exposure to monday.com due to its volatility and financial challenges.
Dividend and Shareholder Returns
EPAM Systems, Inc. does not pay dividends, reflecting a reinvestment strategy to fuel growth and innovation. The company maintains strong free cash flow coverage, enabling share buybacks, which can enhance shareholder value. Conversely, monday.com Ltd. also refrains from dividend payments due to its high growth phase and focus on expansion. Both companies prioritize reinvestment over immediate shareholder returns, suggesting a strategic alignment with long-term value creation, although risks persist if growth fails to materialize.
Strategic Positioning
EPAM Systems, Inc. holds a significant share in the digital platform engineering and software development market, leveraging its expertise across various industries. With a market cap of 10.33B and a competitive beta of 1.767, EPAM faces moderate competitive pressure but is well-positioned against technological disruption. In contrast, monday.com Ltd. has a market cap of 7.36B, focusing on modular work management software, which is rapidly gaining traction. Both companies must navigate evolving market dynamics to maintain their competitive edge.
Stock Comparison
In assessing the weekly stock price movements for EPAM Systems, Inc. (EPAM) and monday.com Ltd. (MNDY), we observe significant dynamics over the past year, characterized by notable declines and varying trading volumes.
Trend Analysis
EPAM Systems, Inc. (EPAM) has experienced a price change of -35.26% over the past year, indicating a bearish trend. The stock reached a high of 311.98 and a low of 142.38, reflecting acceleration in its downward trajectory. The standard deviation of 45.99 suggests considerable volatility in its price movements. In the recent analysis period from September 14, 2025, to November 30, 2025, EPAM’s price changed positively by 19.8%, indicating a brief upward movement, though the long-term outlook remains bearish.
monday.com Ltd. (MNDY) similarly shows a price change of -18.63% over the past year, also demonstrating a bearish trend. The stock’s high was at 324.31, with a low of 143.86, and the acceleration status indicates deceleration. The standard deviation of 41.71 points to notable volatility. In the recent period from September 14, 2025, to November 30, 2025, MNDY’s price declined by 25.05%, reinforcing the bearish sentiment.
Both companies exhibit a trend of increased trading volume with differing buyer-seller dynamics, which warrants cautious consideration for potential investment.
Analyst Opinions
Recent analyst recommendations for EPAM Systems, Inc. (EPAM) and monday.com Ltd. (MNDY) reflect cautious optimism. EPAM has received a “B+” rating, with analysts highlighting strong discounted cash flow and return metrics, suggesting a “buy” consensus. In contrast, MNDY has a “B-” rating, indicating a “hold” stance due to weaker price-to-earnings and price-to-book scores, as noted by analysts. Overall, the consensus for EPAM is a buy, while MNDY leans toward a hold for the current year.
Stock Grades
In the current investment landscape, it’s essential to keep an eye on stock ratings provided by reputable grading companies. Here are the latest grades for two companies: EPAM Systems, Inc. and monday.com Ltd.
EPAM Systems, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | maintain | Outperform | 2025-11-11 |
| JP Morgan | maintain | Overweight | 2025-11-07 |
| Morgan Stanley | maintain | Equal Weight | 2025-09-09 |
| JP Morgan | maintain | Overweight | 2025-08-20 |
| Barclays | maintain | Overweight | 2025-05-12 |
| Needham | maintain | Buy | 2025-05-09 |
| Guggenheim | maintain | Buy | 2025-05-09 |
| Piper Sandler | maintain | Neutral | 2025-05-09 |
| Morgan Stanley | maintain | Equal Weight | 2025-05-09 |
| Stifel | maintain | Buy | 2025-05-02 |
monday.com Ltd. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | maintain | Neutral | 2025-11-11 |
| Piper Sandler | maintain | Overweight | 2025-11-11 |
| Morgan Stanley | maintain | Overweight | 2025-11-11 |
| Jefferies | maintain | Buy | 2025-11-11 |
| Citigroup | maintain | Buy | 2025-11-11 |
| Barclays | maintain | Overweight | 2025-11-11 |
| UBS | maintain | Neutral | 2025-11-11 |
| JP Morgan | maintain | Overweight | 2025-11-11 |
| Wells Fargo | maintain | Overweight | 2025-11-11 |
| DA Davidson | maintain | Buy | 2025-11-11 |
Overall, both EPAM Systems and monday.com have maintained strong support from analysts, with several ratings reflecting a positive outlook. Notably, monday.com has multiple analysts recommending a “Buy,” indicating strong investor confidence in its future performance.
Target Prices
The current target price consensus indicates optimistic expectations for both EPAM Systems, Inc. and monday.com Ltd.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| EPAM Systems, Inc. | 185 | 175 | 180 |
| monday.com Ltd. | 365 | 202 | 293.78 |
For EPAM, the consensus target price of 180 is slightly below the current stock price of 187, suggesting limited upside potential. In contrast, monday.com’s target consensus of 293.78 indicates a significant potential upside compared to the current price of 143.86, highlighting strong analyst optimism.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of two companies, EPAM Systems, Inc. and monday.com Ltd., based on the most recent data available.
| Criterion | EPAM Systems, Inc. | monday.com Ltd. |
|---|---|---|
| Diversification | Strong (varied industries) | Moderate (focused on work OS) |
| Profitability | Moderate (net profit margin: 9.6%) | Weak (net profit margin: 3.3%) |
| Innovation | High (cutting-edge tech solutions) | High (flexible software development) |
| Global presence | Strong (operations in multiple countries) | Moderate (primarily in US and Europe) |
| Market Share | Moderate (growing presence) | Weak (niche market) |
| Debt level | Low (debt-to-equity ratio: 0.045) | Low (debt-to-equity ratio: 0.103) |
Key takeaways: EPAM demonstrates strong diversification and global presence, indicating resilience and growth potential. In contrast, monday.com showcases high innovation but faces challenges with profitability and market share.
Risk Analysis
The following table outlines key risks associated with EPAM Systems, Inc. and monday.com Ltd., which could impact their performance and investment potential.
| Metric | EPAM Systems, Inc. | monday.com Ltd. |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Low |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Low |
In summary, EPAM faces significant market and operational risks, especially given its exposure to the volatile tech sector. Meanwhile, monday.com carries high operational risks due to its business model, which relies heavily on software development and customer retention. Recent increased competition in the SaaS market could further exacerbate these risks.
Which one to choose?
When comparing EPAM Systems (EPAM) and monday.com (MNDY), EPAM stands out with superior financial health and profitability metrics. EPAM’s gross profit margin is at 30.7%, while MNDY boasts an impressive 89.3%, yet struggles with negative operating income. EPAM’s price-to-earnings ratio is 29.5, indicating a more reasonable valuation compared to MNDY’s staggering 363.0, reflecting its ongoing challenges in profitability. Analysts rate EPAM at B+ and MNDY at B-, with target prices suggesting potential upside for both, but EPAM appears more stable with a bullish trend following recent price recovery.
Investors focused on growth may prefer EPAM for its stability and financial metrics, while those willing to take on higher risk for potential high reward might look at MNDY.
Risks include market competition and the volatility inherent in both companies’ sectors.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of EPAM Systems, Inc. and monday.com Ltd. to enhance your investment decisions:
