Automatic Data Processing (NASDAQ:ADP – Get Free Report) and monday.com (NASDAQ:MNDY – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Institutional & Insider Ownership
80.0% of Automatic Data Processing shares are owned by institutional investors. Comparatively, 73.7% of monday.com shares are owned by institutional investors. 0.2% of Automatic Data Processing shares are owned by company insiders. Comparatively, 22.3% of monday.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Automatic Data Processing and monday.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Automatic Data Processing | 19.79% | 70.63% | 7.27% |
| monday.com | 5.58% | 5.99% | 3.64% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Automatic Data Processing | $20.90 billion | 5.01 | $4.08 billion | $10.13 | 25.55 |
| monday.com | $971.99 million | 7.61 | $32.37 million | $1.23 | 118.52 |
Automatic Data Processing has higher revenue and earnings than monday.com. Automatic Data Processing is trading at a lower price-to-earnings ratio than monday.com, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Automatic Data Processing has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, monday.com has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for Automatic Data Processing and monday.com, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Automatic Data Processing | 2 | 9 | 2 | 0 | 2.00 |
| monday.com | 1 | 3 | 22 | 1 | 2.85 |
Automatic Data Processing presently has a consensus target price of $306.42, indicating a potential upside of 18.38%. monday.com has a consensus target price of $259.48, indicating a potential upside of 77.99%. Given monday.com’s stronger consensus rating and higher probable upside, analysts clearly believe monday.com is more favorable than Automatic Data Processing.
Summary
monday.com beats Automatic Data Processing on 8 of the 15 factors compared between the two stocks.
About Automatic Data Processing
Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. Its offerings include payroll services, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solution to businesses through a co-employment model. This segment offers employee benefits, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. Automatic Data Processing, Inc. was founded in 1949 and is headquartered in Roseland, New Jersey.
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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