In the fast-evolving software application landscape, monday.com Ltd. (MNDY) and Asana, Inc. (ASAN) stand out as key players. Both companies operate within the same industry, focusing on innovative work management solutions. Their overlapping markets and distinctive approaches to enhancing productivity make them intriguing for comparison. As we delve into their strategies and market performance, I aim to reveal which company may present the most compelling investment opportunity for you.
Table of contents
Company Overview
monday.com Ltd. Overview
monday.com Ltd. is a prominent player in the software application industry, offering a cloud-based visual work operating system known as Work OS. Founded in 2012 and headquartered in Tel Aviv, the company provides modular building blocks that organizations can use to create customized software applications and work management tools. With a market capitalization of approximately $7.44B, monday.com has positioned itself as a versatile solution for various sectors, including marketing, CRM, and project management. The company serves a diverse clientele ranging from individual teams to large organizations, emphasizing productivity and collaboration.
Asana, Inc. Overview
Asana, Inc. operates an innovative work management platform designed to help individuals and teams coordinate their tasks and projects effectively. Established in 2008 and based in San Francisco, Asana caters to a wide array of industries, from technology to healthcare. With a market cap of around $2.93B, the platform enables users to manage everything from daily tasks to strategic initiatives, promoting enhanced collaboration and goal setting. The company focuses on providing solutions that streamline workflow and improve operational efficiency across various sectors.
Key similarities between monday.com and Asana include their focus on work management solutions and their target market of teams and organizations across various industries. However, they differ in their approach, with monday.com offering a more modular system for custom applications, while Asana emphasizes a structured management platform that orchestrates tasks and projects.
Income Statement Comparison
The table below presents a comparison of the income statements of monday.com Ltd. and Asana, Inc. for their most recent fiscal years, showcasing key financial metrics.
| Metric | monday.com Ltd. | Asana, Inc. |
|---|---|---|
| Revenue | 972M | 724M |
| EBITDA | 58M | -230M |
| EBIT | 40M | -247M |
| Net Income | 32M | -256M |
| EPS | 0.65 | -1.11 |
Interpretation of Income Statement
In the most recent fiscal year, monday.com Ltd. demonstrated significant revenue growth, increasing from 730M to 972M, while maintaining a positive net income of 32M, a notable improvement. In contrast, Asana, Inc. continues to struggle, reporting a revenue increase from 652M to 724M; however, it faced a substantial net loss of 256M. Both companies exhibit pressing challenges with margins, but monday.com shows a strong upward trend, whereas Asana’s performance indicates ongoing operational difficulties and negative EBITDA, reflecting a critical need for strategic adjustments.
Financial Ratios Comparison
The following table provides a comparative analysis of the most recent financial ratios for monday.com Ltd. (MNDY) and Asana, Inc. (ASAN).
| Metric | [Company A: MNDY] | [Company B: ASAN] |
|---|---|---|
| ROE | 3.14% | -112.31% |
| ROIC | -1.73% | -54.04% |
| P/E | 363.0 | -19.16 |
| P/B | 11.41 | 21.52 |
| Current Ratio | 2.66 | 1.44 |
| Quick Ratio | 2.66 | 1.44 |
| D/E | 0.10 | 1.18 |
| Debt-to-Assets | 6.29% | 30.11% |
| Interest Coverage | N/A | N/A |
| Asset Turnover | 0.58 | 0.81 |
| Fixed Asset Turnover | 7.13 | 2.76 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
Analyzing these ratios, MNDY shows a relatively strong liquidity position with a current ratio above 2, indicating good short-term financial health. However, the high P/E ratio suggests overvaluation, reflecting investor optimism. ASAN, on the other hand, has a concerning negative ROE and ROIC, indicating severe profitability challenges. The significantly higher debt levels compared to assets raise red flags regarding financial stability. Overall, both companies exhibit weaknesses in profitability, but MNDY shows better liquidity.
Dividend and Shareholder Returns
Both monday.com (MNDY) and Asana (ASAN) do not pay dividends, which indicates a focus on growth and reinvestment. MNDY has maintained a high cash position and engages in share buybacks, although its dividend payout ratio remains at 0. ASAN, similarly, prioritizes R&D and expansion over immediate shareholder returns. While this strategy supports long-term value creation, the absence of dividends may deter income-focused investors.
Strategic Positioning
monday.com Ltd. (MNDY) holds a competitive edge in the work management software market, capitalizing on its innovative Work OS platform. It commands a significant market share, bolstered by its diverse application capabilities. In contrast, Asana, Inc. (ASAN) faces intense competitive pressure, operating in a saturated market with a narrower focus on task management. Both companies are navigating technological disruptions, with the need for continuous innovation to maintain their market positions. Effective risk management strategies are essential for investors considering these firms.
Stock Comparison
In this section, I will analyze the weekly stock price movements of monday.com Ltd. (MNDY) and Asana, Inc. (ASAN) over the past year, highlighting key trends and trading dynamics.
Trend Analysis
monday.com Ltd. (MNDY) Over the past year, MNDY has experienced a price change of -16.97%, indicating a bearish trend. The stock has shown notable deceleration in its price movements, with the highest price reaching 324.31 and the lowest at 146.78. The overall volatility, measured by a standard deviation of 41.64, suggests significant price fluctuations. More recently, from September 14 to November 30, MNDY’s price declined by 23.53%, with a trend slope of -4.77, further confirming the bearish sentiment.
Asana, Inc. (ASAN) ASAN’s stock has seen a price change of -26.3% over the past year, also indicating a bearish trend. Similar to MNDY, ASAN is experiencing deceleration in its price trend. The stock reached a high of 24.15 and a low of 11.53, with a lower volatility of 2.93. In the recent period from September 14 to November 30, ASAN’s price dropped by 5.83%, with a trend slope of -0.12, reinforcing the bearish outlook.
Both companies are currently facing downward pressure, and investors should exercise caution when considering these stocks for their portfolios.
Analyst Opinions
Recent analyst recommendations for monday.com Ltd. (MNDY) suggest a “Buy” rating, with a strong discounted cash flow score of 4, indicating solid future growth potential. Analysts highlight its robust return on assets and equity as positive indicators. Conversely, Asana, Inc. (ASAN) has received a “Sell” rating with a D+ overall score, largely due to its poor performance metrics across key financial ratios. The consensus for MNDY is a buy, while ASAN’s consensus leans toward sell for the current year.
Stock Grades
I have gathered the most recent stock ratings for two companies: monday.com Ltd. (MNDY) and Asana, Inc. (ASAN). Below are the reliable grades provided by established grading companies.
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 |
Asana, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Baird | maintain | Neutral | 2025-09-04 |
| Morgan Stanley | maintain | Underweight | 2025-09-04 |
| Piper Sandler | maintain | Overweight | 2025-09-04 |
| Baird | maintain | Neutral | 2025-06-04 |
| UBS | maintain | Neutral | 2025-06-04 |
| Jefferies | maintain | Hold | 2025-06-04 |
| RBC Capital | maintain | Underperform | 2025-06-04 |
| Morgan Stanley | maintain | Underweight | 2025-06-04 |
| JMP Securities | maintain | Market Outperform | 2025-06-04 |
| B of A Securities | maintain | Buy | 2025-06-04 |
Overall, the grades for monday.com show a stable sentiment with several maintain ratings in the overweight and buy categories. In contrast, Asana has mixed signals, with a combination of neutral and underweight ratings, indicating a more cautious outlook.
Target Prices
A consensus of target prices has been established based on reliable analyst data.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| monday.com Ltd. | 365 | 202 | 293.78 |
| Asana, Inc. | 88 | 10 | 23.41 |
Analysts expect monday.com Ltd. to reach a consensus target price of 293.78, significantly above its current price of 145.41. In contrast, Asana, Inc. has a target consensus of 23.41, also above its current price of 12.42.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of monday.com Ltd. (MNDY) and Asana, Inc. (ASAN) based on the most recent data.
| Criterion | monday.com Ltd. (MNDY) | Asana, Inc. (ASAN) |
|---|---|---|
| Diversification | Broad product range across multiple sectors | Focused on work management solutions |
| Profitability | Positive gross margin (89.3%) | Negative net margin (-35.3%) |
| Innovation | Strong emphasis on product development | Steady improvements, but slower growth |
| Global presence | Operates in multiple regions (US, Europe, etc.) | Established in several international markets |
| Market Share | Growing presence in project management | Competitive, but facing strong rivals |
| Debt level | Low debt-to-equity ratio (0.10) | Higher debt-to-equity ratio (1.18) |
Key takeaways indicate that while monday.com demonstrates strong profitability and low debt levels, Asana struggles with profitability and higher leverage. However, both companies have notable global footprints and product diversification strategies that could appeal to investors.
Risk Analysis
In the following table, I outline the key risks associated with monday.com Ltd. (MNDY) and Asana, Inc. (ASAN) to provide a clearer perspective on their operational environment.
| Metric | monday.com Ltd. | Asana, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant market and operational risks, especially Asana, which has reported lower margins and higher debt levels. As of 2025, Asana’s net profit margin remains negative at -35%, indicating substantial financial pressure and operational challenges.
Which one to choose?
When comparing monday.com Ltd. (MNDY) and Asana, Inc. (ASAN), the financial fundamentals suggest that MNDY appears more favorable for long-term investors. MNDY has a market cap of approximately $11.75B and shows a gross profit margin of 89.3%, while ASAN’s market cap is around $4.90B with a gross profit margin of 89.3%. MNDY holds a rating of B, whereas ASAN has a rating of D+, indicating better overall performance. Analyst targets and stock trends reveal that MNDY has a bearish trend but less volatility compared to ASAN, which has experienced a more significant decline.
Investors focused on growth may prefer MNDY, while those prioritizing stability may find ASAN’s lower valuation appealing. However, both companies face risks such as market dependence and ongoing competition.
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 monday.com Ltd. and Asana, Inc. to enhance your investment decisions:
