MNDY vs ASAN? Which stock is better?
Portfolio: One of them is far outpacing the other....it is not even close!
Working from home (WFH) is here to stay. More than 90% of workers in the US prefer to work from home, if given a choice. By the end of 2022, at least 25% of all professional jobs in North America will be remote-based. And these trends will continue to grow until a new labor balance between in-office and WFH is established. So it is not surprising that employers are looking for better ways to engage these workers who are not in the office full-time. They need to make sure that these WFH warriors remain productive, complete their individual work assignments and collaborate successfully with other members of their team.
Enter, Monday.com and Asana - two companies that are providing cloud-based software to help employers manage geographically dispersed teams towards a common set of deliverables.
This comparison between MNDY and ASAN took a bit longer to complete for two reasons:
Both companies are young and to get the right data, I needed to dig deeper through their earnings reports, supplementary documents and SEC filings.
MNDY, being a non-US company, does not file 10k and 10q reports with the SEC. They file different forms such as the 20-F and 6-K, with different templates and limited content.
Common belief, in the market, is that both companies are growing rapidly and are doing well, leading to two camps that cannot agree on which is better. However, when you dive lower and compare them at the unit metric level, one is far outpacing the other....it is not even close!
I have read multiple product comparisons between Monday.com and Asana and there is no general agreement on which has better features and capabilities. One review gives the trophy to MNDY and the next one picks ASAN as the winner. It seems to be in the eye of beholder…six of one, half a dozen of the other.
Monday is taking a bottoms-up grass roots product & marketing strategy - enticing individual users to try its product and depending on satisfied users to convince their colleagues, their teams and companies to using the product. Their tools are very user-friendly, easy to onboard, have built-in integration to most commonly used office software and document management platforms and support a wide variety of business functions and use cases.
Asana focuses on signing up businesses - small, medium and large…more of a top-down approach. They have been adding product features that are more attuned to what corporations seek - governance, security, complex project and large-team management etc.
In the short term, both approaches seem to be gaining market share. So we need to further dissect these companies’ business metrics to find out which one has an edge.
Quantifiable unit metrics
See the comparison table below. I have grouped similar unit metrics for easy review. A green shaded cell reflects where one company is doing better than the other. These numbers tell a very compelling story: