In the increasingly competitive software application industry, monday.com Ltd. (MNDY) and Asana, Inc. (ASAN) stand out as innovators in work management solutions. Both companies aim to enhance productivity and streamline workflows for organizations of all sizes. Their overlapping markets and complementary functionalities make them compelling subjects for comparison. As we delve into this analysis, I will uncover which of these two companies may present the more intriguing investment opportunity for you.
Table of contents
Company Overview
monday.com Ltd. Overview
monday.com Ltd. is a leading player in the software application industry, focused on providing a comprehensive Work OS platform that enhances collaboration and project management across various sectors. Founded in 2012 and headquartered in Tel Aviv, Israel, the company has developed modular building blocks that enable organizations to customize their work management tools. With a market capitalization of approximately $8.04B and a robust workforce of 2,508 employees, monday.com serves a diverse clientele, including educational institutions and governmental bodies. The company’s commitment to innovation is evident in its solutions for CRM, marketing, and software development, positioning it as a versatile partner for businesses looking to streamline their operations.
Asana, Inc. Overview
Asana, Inc., established in 2008 and based in San Francisco, California, provides a powerful work management platform designed to help teams orchestrate a wide range of tasks from routine operations to strategic initiatives. With a market capitalization of around $3.39B and a dedicated team of 1,819 employees, Asana serves multiple industries including technology, education, and healthcare. The platform facilitates effective project management, marketing campaigns, and organizational goal-setting, making it a vital tool for businesses aiming to enhance productivity and collaboration. Asana’s focus on user-friendly design and integration capabilities has solidified its presence in the competitive software application landscape.
Key similarities and differences
Both monday.com and Asana operate within the software application industry, providing work management solutions tailored for collaboration and project oversight. However, monday.com emphasizes a highly customizable Work OS, while Asana focuses on orchestrating tasks and managing complex projects across various sectors. Their distinct platforms cater to different aspects of work management, reflecting their unique approaches to enhancing team productivity.
Income Statement Comparison
The following table provides a summary of the most recent income statements for monday.com Ltd. and Asana, Inc., highlighting key financial metrics for each company.
| Metric | monday.com Ltd. | Asana, Inc. |
|---|---|---|
| Market Cap | 8.04B | 3.39B |
| Revenue | 972M | 724M |
| EBITDA | 58M | -230M |
| EBIT | 40M | -247M |
| Net Income | 32M | -256M |
| EPS | 0.65 | -1.11 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
In the most recent fiscal year, monday.com demonstrated strong revenue growth, reaching 972M, up from 730M the previous year, while Asana’s revenue increased to 724M from 652M, indicating a more modest growth trajectory. Despite the revenue increase, Asana continues to report significant net losses, reflecting challenges in managing operating expenses, with a net income of -256M. Conversely, monday.com has achieved profitability with a net income of 32M, showcasing better operational efficiency and improved margins. Overall, both companies face substantial operating costs, but monday.com’s performance is notably more favorable in terms of profitability and income stability.
Financial Ratios Comparison
In this section, I present a comparative analysis of the most recent financial ratios for monday.com Ltd. (MNDY) and Asana, Inc. (ASAN). This table will help investors assess which company may be a more suitable addition to their portfolios.
| Metric | MNDY | ASAN |
|---|---|---|
| ROE | 3.14% | -112.31% |
| ROIC | -1.73% | -54.04% |
| P/E | 363.00 | -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 | -72.42 |
| 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, monday.com appears to have a stronger liquidity position with higher current and quick ratios, which suggests better short-term financial health. However, Asana has a higher asset turnover ratio, indicating potentially more efficient use of assets. Both companies, however, show negative returns on equity and invested capital, raising concerns about their profitability and operational efficiency.
Dividend and Shareholder Returns
Both monday.com (MNDY) and Asana, Inc. (ASAN) do not pay dividends, primarily due to their focus on reinvestment strategies aimed at fostering growth. MNDY’s lack of dividends reflects its current losses, while ASAN’s negative net income suggests a similar prioritization of R&D and acquisitions. Notably, both companies engage in share buyback programs, which may indicate a commitment to enhancing shareholder value despite the absence of dividends. This approach, while risky, could lead to sustainable long-term value creation if managed effectively.
Strategic Positioning
In the competitive landscape of application software, monday.com Ltd. (MNDY) and Asana, Inc. (ASAN) are notable players. MNDY commands a market cap of $8.04B, providing a robust Work OS that integrates modular tools for various business functions. ASAN, valued at $3.39B, focuses on work management for diverse industries. Both face competitive pressure from emerging technologies and established firms, emphasizing the need for continuous innovation to maintain market share.
Stock Comparison
In analyzing the weekly stock price movements for monday.com Ltd. (MNDY) and Asana, Inc. (ASAN) over the past year, I observed significant price fluctuations and trading dynamics that have shaped investor sentiment and market positioning.
Trend Analysis
monday.com Ltd. (MNDY) Over the past year, MNDY has experienced a price change of -17.52%, indicating a bearish trend. The stock reached a notable high of 324.31 and a low of 143.86, with a standard deviation of 42.05, reflecting considerable volatility. The recent trend shows a decline of -28.22% from September 21 to December 7, suggesting deceleration in the bearish movement.
Asana, Inc. (ASAN) ASAN has recorded a -23.12% price change over the past year, also reflecting a bearish trend. The stock has fluctuated between a high of 24.15 and a low of 11.53, with a standard deviation of 2.93, indicating lower volatility compared to MNDY. Interestingly, the recent trend from September 21 to December 7 shows a slight increase of 0.6%, although the overall trend remains bearish with deceleration noted in the price movement.
Both stocks exhibit bearish trends and caution is advised for investors considering positions in these equities.
Analyst Opinions
Recent analyst recommendations for monday.com Ltd. (MNDY) indicate a cautious stance, with a rating of B- from several analysts. The consensus suggests that its discounted cash flow is promising, though concerns about its price-to-earnings and price-to-book ratios persist. On the other hand, Asana, Inc. (ASAN) is rated at D+, reflecting significant challenges, particularly in its return on equity and overall financial health. As a result, the consensus for MNDY leans towards a buy, while ASAN is generally viewed as a sell for the current year.
Stock Grades
In the current market landscape, several companies have received grades from reliable sources, providing valuable insights for investors.
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 |
|---|---|---|---|
| DA Davidson | Maintain | Neutral | 2025-12-04 |
| Citigroup | Maintain | Neutral | 2025-12-03 |
| UBS | Maintain | Neutral | 2025-12-03 |
| RBC Capital | Maintain | Underperform | 2025-12-03 |
| Morgan Stanley | Maintain | Underweight | 2025-09-04 |
| Piper Sandler | Maintain | Overweight | 2025-09-04 |
| Baird | Maintain | Neutral | 2025-09-04 |
| JMP Securities | Maintain | Market Outperform | 2025-06-04 |
| Scotiabank | Maintain | Sector Perform | 2025-06-04 |
| Morgan Stanley | Maintain | Underweight | 2025-06-04 |
In summary, monday.com Ltd. showcases a strong performance with multiple “Overweight” and “Buy” ratings, indicating positive sentiment. Conversely, Asana, Inc. has a mixed outlook, with several “Neutral” and “Underperform” grades, suggesting caution for potential investors.
Target Prices
A consensus of target prices has been established among analysts for both monday.com Ltd. (MNDY) and Asana, Inc. (ASAN).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| monday.com Ltd. | 365 | 202 | 289.4 |
| Asana, Inc. | 16 | 14 | 15 |
The analysts project significant upside potential for both companies, particularly for MNDY, which has a target consensus nearly double its current price of 157.17. In contrast, ASAN’s target price of 15 is slightly above its current price of 14.285, indicating a more modest expectation for growth.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of monday.com Ltd. (MNDY) and Asana, Inc. (ASAN) based on the latest financial data.
| Criterion | monday.com Ltd. (MNDY) | Asana, Inc. (ASAN) |
|---|---|---|
| Diversification | Moderate | Moderate |
| Profitability | Low | Negative |
| Innovation | High | Moderate |
| Global presence | Strong | Moderate |
| Market Share | Growing | Moderate |
| Debt level | Low | High |
Key takeaways from this analysis suggest that while monday.com possesses strong innovation and a robust global presence, it still faces profitability challenges. In contrast, Asana shows moderate innovation and market presence but struggles significantly with profitability and carries a higher debt level.
Risk Analysis
The following table outlines key risks associated with monday.com Ltd. (MNDY) and Asana, Inc. (ASAN) for the most recent fiscal year.
| Metric | monday.com Ltd. | Asana, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | High |
In assessing the risks, both companies face significant market and operational risks, particularly Asana, which has a higher exposure due to its recent financial struggles. Asana’s net income margin remains negative, raising concerns about its sustainability and ability to navigate market fluctuations effectively.
Which one to choose?
When comparing monday.com Ltd. (MNDY) and Asana, Inc. (ASAN), fundamental analysis reveals distinct differences. MNDY holds a market cap of approximately $11.75B and demonstrates a robust gross profit margin of 89.3%, alongside a favorable rating of B-. In contrast, ASAN, with a market cap of $4.89B, has a lower gross profit margin of 89.3% and a weaker rating of D+. Stock trends indicate that both companies are in bearish territory, with MNDY showing a 17.52% decline and ASAN a 23.12% decline over the past year.
For growth-focused investors, MNDY appears more enticing due to its solid fundamentals and better market perception. However, those prioritizing stability may lean towards MNDY as well, given its stronger financial metrics and analyst ratings.
It’s important to note that both companies face risks related to competition and overall market conditions, potentially impacting future performance.
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:
