Block (NYSE:SQ) and monday.com (NASDAQ:MNDY) Head-To-Head Survey

monday.com (NASDAQ:MNDY) and Block (NYSE:SQ) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

73.7% of monday.com shares are owned by institutional investors. Comparatively, 70.4% of Block shares are owned by institutional investors. 22.3% of monday.com shares are owned by company insiders. Comparatively, 10.5% of Block shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares monday.com and Block”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
monday.com	$906.59 million	12.42	-$1.88 million	$0.41	568.83
Block	$23.86 billion	2.31	$9.77 million	$1.78	49.98

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

Analyst Ratings

This is a summary of recent recommendations for monday.com and Block, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
monday.com	0	6	16	1	2.78
Block	1	5	26	0	2.78

monday.com presently has a consensus price target of $309.14, suggesting a potential upside of 32.55%. Block has a consensus price target of $96.33, suggesting a potential upside of 8.28%. Given monday.com’s stronger consensus rating and higher probable upside, equities research analysts clearly believe monday.com is more favorable than Block.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
monday.com	2.39%	4.99%	3.10%
Block	4.73%	5.24%	2.81%

Risk and Volatility

monday.com has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Block has a beta of 2.5, indicating that its stock price is 150% more volatile than the S&P 500.

Summary

monday.com beats Block on 8 of the 15 factors compared between the two stocks.

About monday.com

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 Block

Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions. The company also provides Square Point of Sale software; Cash App, which provides access to the financial system, allowing customers to electronically send, store, and spend money; Caviar, a food ordering platform for restaurants to offer food ordering, pickup and delivery, to their customers; and Square Capital that facilitates loans to sellers based on real-time payment and point-of-sale data. Square, Inc. was founded in 2009 and is headquartered in San Francisco, California.