Block (NYSE:SQ – Get Free Report) and monday.com (NASDAQ:MNDY – Get Free Report) are both large-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.
Profitability
This table compares Block and monday.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Block | 4.73% | 5.24% | 2.81% |
| monday.com | 2.39% | 4.99% | 3.10% |
Analyst Ratings
This is a breakdown of current ratings and price targets for Block and monday.com, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Block | 1 | 5 | 26 | 0 | 2.78 |
| monday.com | 0 | 6 | 16 | 1 | 2.78 |
Volatility and Risk
Block has a beta of 2.5, indicating that its share price is 150% more volatile than the S&P 500. Comparatively, monday.com has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.
Insider and Institutional Ownership
70.4% of Block shares are held by institutional investors. Comparatively, 73.7% of monday.com shares are held by institutional investors. 10.5% of Block shares are held by company insiders. Comparatively, 22.3% of monday.com shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Block and monday.com”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Block | $23.86 billion | 2.31 | $9.77 million | $1.78 | 49.98 |
| monday.com | $906.59 million | 12.42 | -$1.88 million | $0.41 | 568.83 |
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.
Summary
monday.com beats Block on 8 of the 15 factors compared between the two stocks.
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.
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.
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