VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 8, 2026

Stock Comparison

Kao Corporation vs Watsco, Inc.

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

Kao Corporation

4452 · Tokyo Stock Exchange

Market cap (USD)$2.9T
Gross margin (TTM)39.2%
Operating margin (TTM)9.5%
Net margin (TTM)7.3%
SectorConsumer
IndustryHousehold & Personal Products
CountryJP
Data as of2025-12-28
Moat score
60/ 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 Kao Corporation's moat claims, evidence, and risks.

View 4452 analysis

Watsco, Inc.

WSO · New York Stock Exchange

Market cap (USD)$14.4B
Gross margin (TTM)28.3%
Operating margin (TTM)10.2%
Net margin (TTM)7.4%
SectorIndustrials
IndustryIndustrial - Distribution
CountryUS
Data as of2026-01-05
Moat score
72/ 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 Watsco, Inc.'s moat claims, evidence, and risks.

View WSO analysis

Comparison highlights

  • Moat score gap: Watsco, Inc. leads (72 / 100 vs 60 / 100 for Kao Corporation).
  • Segment focus: Kao Corporation has 5 segments (33.5% in Hygiene Living Care Business); Watsco, Inc. has 1 segment (100% in HVAC/R Distribution).
  • Primary market structure: Oligopoly vs Competitive. Pricing power: Moderate vs Moderate.
  • Moat breadth: Kao Corporation has 5 moat types across 2 domains; Watsco, Inc. has 4 across 3.

Primary market context

Kao Corporation

Hygiene Living Care Business

Market

Household & fabric care and sanitary consumer packaged goods

Geography

Japan and Asia (with select global brands)

Customer

Consumers (retail)

Role

Branded manufacturer

Revenue share

33.5%

Watsco, Inc.

HVAC/R Distribution

Market

HVAC/R equipment, parts and supplies distribution

Geography

North America (U.S., Canada, Mexico, Puerto Rico; export to Latin America/Caribbean)

Customer

Licensed HVAC and refrigeration contractors (residential & commercial)

Role

Wholesale distributor

Revenue share

100%

Side-by-side metrics

Kao Corporation
Watsco, Inc.
Ticker / Exchange
4452 - Tokyo Stock Exchange
WSO - New York Stock Exchange
Market cap (USD)
$2.9T
$14.4B
Gross margin (TTM)
39.2%
28.3%
Operating margin (TTM)
9.5%
10.2%
Net margin (TTM)
7.3%
7.4%
Sector
Consumer
Industrials
Industry
Household & Personal Products
Industrial - Distribution
HQ country
JP
US
Primary segment
Hygiene Living Care Business
HVAC/R Distribution
Market structure
Oligopoly
Competitive
Market share
n/a
9%-12% (implied)
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
60 / 100
72 / 100
Moat domains
Demand, Supply
Supply, Legal, Demand
Last update
2025-12-28
2026-01-05

Moat coverage

Shared moat types

No overlap yet.

Kao Corporation strengths

Brand TrustTraining Org Change CostsService Field NetworkCapex Knowhow ScaleDesign In Qualification

Watsco, Inc. strengths

Physical Network DensityContractual ExclusivityScale Economies Unit CostData Workflow Lockin

Segment mix

Kao Corporation segments

Full profile >

Hygiene Living Care Business

Oligopoly

33.5%

Health Beauty Care Business

Competitive

26%

Cosmetics Business

Competitive

15%

Business Connected Business

Competitive

2.4%

Chemical Business

Competitive

23.1%

Watsco, Inc. segments

Full profile >

HVAC/R Distribution

Competitive

100%

Want the full wide moat stocks list?

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Looking for expansion-stage stocks?

Proven models entering the expansion stage with unit economics that work.

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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.