In the rapidly evolving software application industry, ServiceNow, Inc. (NOW) and monday.com Ltd. (MNDY) stand out as key players, each with unique approaches to innovation and market engagement. While both companies provide enterprise solutions aimed at enhancing workflow efficiency, their strategies and target markets differ significantly. As an investor, understanding these nuances is crucial for making informed decisions. In this article, I will guide you through a comparative analysis to determine which company might be the most compelling addition to your portfolio.
Table of contents
Company Overview
ServiceNow, Inc. Overview
ServiceNow, Inc. is a leader in enterprise cloud computing solutions, focusing on workflow automation across various sectors. Founded in 2004 and headquartered in Santa Clara, California, the company provides a robust platform that integrates artificial intelligence, machine learning, and robotic process automation. ServiceNow’s offerings range from IT service management to governance, risk, and compliance tools, serving a diverse clientele that includes government agencies and large enterprises. With a market capitalization of approximately $169B, ServiceNow positions itself as a pivotal player in enhancing operational efficiencies and digital transformation.
monday.com Ltd. Overview
monday.com Ltd., established in 2012 and based in Tel Aviv-Yafo, Israel, specializes in work operating systems designed for project management and team collaboration. The company’s cloud-based platform allows users to customize and create applications to manage workflows effectively. With a focus on versatility, monday.com caters to various sectors, including marketing, CRM, and education, facilitating seamless collaboration among teams. Currently valued at around $7.4B, monday.com continues to innovate in the software-as-a-service (SaaS) space, appealing to organizations looking for adaptable solutions to enhance productivity.
Key similarities and differences
Both ServiceNow and monday.com operate in the software application industry, offering cloud-based solutions for workflow management. However, while ServiceNow focuses heavily on enterprise-level IT service management and automation, monday.com emphasizes user-friendly, customizable project management tools. This distinction highlights ServiceNow’s enterprise sophistication compared to monday.com’s accessibility for smaller teams and organizations.
Income Statement Comparison
The following table provides a detailed comparison of the recent income statements for ServiceNow, Inc. (NOW) and monday.com Ltd. (MNDY), highlighting key financial metrics.
| Metric | ServiceNow, Inc. (NOW) | monday.com Ltd. (MNDY) |
|---|---|---|
| Market Cap | 169B | 7.36B |
| Revenue | 10.98B | 972M |
| EBITDA | 2.23B | 58M |
| EBIT | 1.76B | 40M |
| Net Income | 1.43B | 32M |
| EPS | 6.92 | 0.65 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, ServiceNow demonstrated robust growth with a revenue increase to 10.98B, representing a significant rise from the previous year. Conversely, monday.com showed a notable improvement in its revenue to 972M, although it remains significantly lower than ServiceNow. While ServiceNow maintained healthy profit margins, monday.com is still in a recovery phase, reflecting its ongoing investment in growth despite a modest net income. Overall, ServiceNow’s performance signifies strong market positioning, whereas monday.com is on a path toward profitability but must continue to improve its operational efficiency.
Financial Ratios Comparison
Below is a comparative table of the most recent financial ratios for ServiceNow, Inc. (NOW) and monday.com Ltd. (MNDY).
| Metric | NOW | MNDY |
|---|---|---|
| ROE | 14.83% | 3.14% |
| ROIC | 9.22% | -1.73% |
| P/E | 153.13 | N/A |
| P/B | 22.71 | 11.41 |
| Current Ratio | 1.10 | 2.66 |
| Quick Ratio | 1.10 | 2.66 |
| D/E | 0.24 | 0.10 |
| Debt-to-Assets | 0.11 | 0.05 |
| Interest Coverage | 59.30 | N/A |
| Asset Turnover | 0.54 | 0.58 |
| Fixed Asset Turnover | 4.47 | 7.13 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of Financial Ratios
ServiceNow (NOW) demonstrates stronger financial health with a higher ROE and ROIC compared to monday.com (MNDY), suggesting better profitability and efficient capital utilization. While NOW’s higher P/E and P/B ratios may indicate overvaluation, its robust current and quick ratios reflect good liquidity. MNDY’s negative ROIC and high asset turnover suggest operational challenges, indicating potential risks for investors. Overall, NOW appears more solid, while MNDY warrants caution due to its weaker metrics.
Dividend and Shareholder Returns
ServiceNow, Inc. (NOW) does not pay dividends, prioritizing reinvestment for growth and innovation. The absence of dividends is typical for companies in a high-growth phase, focusing on R&D and acquisitions to drive long-term shareholder value. Conversely, monday.com Ltd. (MNDY) also refrains from dividend payments, reflecting similar growth strategies. Both companies engage in share buybacks, which can support share price appreciation. Ultimately, their approaches suggest a commitment to sustainable long-term value creation for shareholders.
Strategic Positioning
ServiceNow, Inc. (NOW) holds a significant market share in the enterprise cloud solutions sector, particularly in IT service management, with a market cap of $169B. Its robust platform offers comprehensive automation capabilities, positioning it strongly against competitors like monday.com Ltd. (MNDY), which focuses on modular work management solutions and has a market cap of $7.36B. Both companies face competitive pressure from emerging technologies and startups. However, ServiceNow’s extensive service offerings and strategic partnerships give it a competitive edge in a rapidly evolving landscape.
Stock Comparison
In analyzing the stock price performance of ServiceNow, Inc. (NOW) and monday.com Ltd. (MNDY) over the past year, we observe significant price movements and trading dynamics reflective of their respective market conditions.
Trend Analysis
ServiceNow, Inc. (NOW) has demonstrated a notable bullish trend with a price change of +20.15% over the past year. Despite this upward trajectory, the recent trend shows a decline of -12.55% from September 14, 2025, to November 30, 2025, indicating a deceleration in momentum. The stock experienced high volatility, with a standard deviation of 116.45. The highest price reached was $1124.98, while the lowest was $656.93.
monday.com Ltd. (MNDY), on the other hand, is exhibiting a bearish trend with an overall price change of -18.63% over the last year. The recent analysis reflects a more pronounced decline of -25.05% during the same period, which also suggests a deceleration in the stock’s performance. The volatility is lower compared to NOW, with a standard deviation of 41.71. MNDY’s highest price was $324.31, while it dipped to a low of $143.86.
In summary, while NOW shows resilience with a long-term bullish trend despite recent setbacks, MNDY is currently in a challenging position with a firm bearish outlook. Investors should consider these dynamics carefully when making decisions.
Analyst Opinions
Recent analyst recommendations for ServiceNow, Inc. (NOW) indicate a “Buy” rating, attributed to strong scores in discounted cash flow and return on equity, reflecting a solid growth outlook. Analysts like those from Morningstar have highlighted these strengths. In contrast, monday.com Ltd. (MNDY) holds a “Hold” rating, with analysts noting moderate returns on equity and assets, suggesting a cautious approach. The consensus for NOW is a strong buy, while MNDY leans towards a hold for the current year.
Stock Grades
In this section, I will provide the latest stock grades for ServiceNow, Inc. (NOW) and monday.com Ltd. (MNDY) based on reputable grading companies.
ServiceNow, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | maintain | Overweight | 2025-10-30 |
| Canaccord Genuity | maintain | Buy | 2025-10-30 |
| TD Cowen | maintain | Buy | 2025-10-30 |
| UBS | maintain | Buy | 2025-10-30 |
| Wells Fargo | maintain | Overweight | 2025-10-30 |
| Barclays | maintain | Overweight | 2025-10-30 |
| Citigroup | maintain | Buy | 2025-10-30 |
| UBS | maintain | Buy | 2025-10-14 |
| Morgan Stanley | upgrade | Overweight | 2025-09-24 |
| JMP Securities | maintain | Market Outperform | 2025-08-04 |
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 companies maintain a strong position in the market with several “Buy” and “Overweight” ratings, indicating confidence from analysts. ServiceNow shows a consistent performance with its ratings, while monday.com has a mix of neutral and positive outlooks, suggesting cautious optimism among analysts.
Target Prices
The consensus target prices from analysts indicate optimistic expectations for both ServiceNow, Inc. and monday.com Ltd.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| ServiceNow, Inc. | 1315 | 860 | 1172.71 |
| monday.com Ltd. | 365 | 202 | 293.78 |
Analysts project a target consensus price of 1172.71 for ServiceNow, significantly above its current price of 812.41, suggesting a strong upside potential. For monday.com, the target consensus of 293.78 also reflects an encouraging outlook compared to its current price of 143.86.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of ServiceNow, Inc. (NOW) and monday.com Ltd. (MNDY) based on the most recent data available.
| Criterion | ServiceNow, Inc. (NOW) | monday.com Ltd. (MNDY) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (Net Margin: 12.97%) | Weak (Net Margin: 3.33%) |
| Innovation | High | Moderate |
| Global presence | Strong | Moderate |
| Market Share | Significant | Growing |
| Debt level | Low (Debt/Equity: 0.24) | Very low (Debt/Equity: 0.10) |
Key takeaways indicate that while ServiceNow demonstrates strong profitability and innovation, monday.com has lower debt levels and is gaining market traction. However, profitability remains a significant challenge for monday.com.
Risk Analysis
The following table outlines the key risks associated with ServiceNow, Inc. (NOW) and monday.com Ltd. (MNDY).
| Metric | ServiceNow, Inc. | monday.com Ltd. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Low | High |
| Environmental Risk | Moderate | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant market and operational risks, particularly monday.com, which has a higher exposure due to its growth phase. Recent market volatility and geopolitical tensions could amplify these risks. Thus, I recommend a cautious approach when considering investments in these stocks.
Which one to choose?
When comparing ServiceNow, Inc. (NOW) and monday.com Ltd. (MNDY), the fundamentals reveal a more favorable profile for NOW. ServiceNow boasts a market cap of approximately $218B with a net profit margin of 13% and strong revenue growth, while monday.com holds a market cap of about $11.8B, showing struggles with profitability and a net profit margin of just 3%.
NOW’s price-to-earnings ratio stands at a high 153.13, reflecting growth expectations, whereas MNDY’s high ratio of 362.98 indicates potential overvaluation. Analyst ratings give ServiceNow a solid ‘B’, with a bullish stock trend, while monday.com receives a slightly lower ‘B-‘ with a bearish outlook.
Recommendation: Investors focused on growth may prefer NOW, given its robust profitability metrics and market position. Conversely, those seeking high-risk opportunities might consider MNDY, despite its current challenges.
Specific risks include competitive pressures and market dependence, particularly for MNDY in the SaaS sector.
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 ServiceNow, Inc. and monday.com Ltd. to enhance your investment decisions:
