VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

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Saturday, January 3, 2026

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Stock Comparison

Tencent Holdings Limited vs Xero Limited

Compare moat strength, market structure, and segment coverage to understand how each company defends its edge.

Tencent Holdings Limited

0700.HK · Hong Kong Stock Exchange

Market cap (USD)$5.7T
Gross margin (TTM)54.9%
Operating margin (TTM)31.8%
Net margin (TTM)29.9%
SectorCommunication Services
IndustryInternet Content & Information
CountryCN
Data as of2025-12-28
Moat score
73/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Tencent Holdings Limited's moat claims, evidence, and risks.

View 0700.HK analysis

Xero Limited

XRO · Australian Securities Exchange

Market cap (USD)—
Gross margin (TTM)—
Operating margin (TTM)—
Net margin (TTM)—
SectorTechnology
Industry—
CountryNZ
Data as of2026-01-02
Moat score
71/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Xero Limited's moat claims, evidence, and risks.

View XRO analysis

Comparison highlights

  • Moat score gap: Tencent Holdings Limited leads (73 / 100 vs 71 / 100 for Xero Limited).
  • Segment focus: Tencent Holdings Limited has 4 segments (48.3% in Value-Added Services (VAS)); Xero Limited has 2 segments.
  • Moat breadth: Tencent Holdings Limited has 6 moat types across 2 domains; Xero Limited has 7 across 3.

Primary market context

Tencent Holdings Limited

Value-Added Services (VAS)

Market

Consumer social platforms and digital entertainment (online games, subscriptions, virtual items, digital content)

Geography

Mainland China (core) + Global (games)

Customer

Consumers

Role

Platform/operator + content publisher

Revenue share

48.3%

Xero Limited

Core Accounting Subscription Platform

Market

Cloud accounting software for small businesses and their advisors

Geography

Global

Customer

SMB; accountants & bookkeepers

Role

Software platform (SaaS)

Side-by-side metrics

Tencent Holdings Limited
Xero Limited
Ticker / Exchange
0700.HK - Hong Kong Stock Exchange
XRO - Australian Securities Exchange
Market cap (USD)
$5.7T
n/a
Gross margin (TTM)
54.9%
n/a
Operating margin (TTM)
31.8%
n/a
Net margin (TTM)
29.9%
n/a
Sector
Communication Services
Technology
Industry
Internet Content & Information
n/a
HQ country
CN
NZ
Primary segment
Value-Added Services (VAS)
Core Accounting Subscription Platform
Market structure
Oligopoly
Oligopoly
Market share
n/a
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
73 / 100
71 / 100
Moat domains
Network, Supply
Demand, Network, Financial
Last update
2025-12-28
2026-01-02

Moat coverage

Shared moat types

Ecosystem ComplementsTwo Sided Network

Tencent Holdings Limited strengths

Direct Network EffectsDistribution ControlData Network EffectsCapex Knowhow Scale

Xero Limited strengths

Data Workflow LockinSwitching Costs GeneralBenchmark Pricing PowerInteroperability HubSuite Bundling

Segment mix

Tencent Holdings Limited segments

Full profile >

Value-Added Services (VAS)

Oligopoly

48.3%

Marketing Services

Oligopoly

18.4%

FinTech and Business Services

Oligopoly

32.1%

Others

Competitive

1.2%

Xero Limited segments

Full profile >

Core Accounting Subscription Platform

Oligopoly

n/a

Platform Services (Payments, Payroll, App Ecosystem)

Competitive

n/a

Want the full wide moat stocks list?

Browse the full ranking of wide moat stocks, updated with moat scores and segment context.

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Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.