VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Friday, January 9, 2026

Stock Comparison

Automatic Data Processing, Inc. vs Graco Inc.

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

Automatic Data Processing, Inc.

ADP · NASDAQ

Market cap (USD)$104.1B
Gross margin (TTM)49.3%
Operating margin (TTM)19.2%
Net margin (TTM)19.8%
SectorTechnology
IndustryStaffing & Employment Services
CountryUS
Data as of2025-12-30
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 Automatic Data Processing, Inc.'s moat claims, evidence, and risks.

View ADP analysis

Graco Inc.

GGG · New York Stock Exchange

Market cap (USD)$13.8B
Gross margin (TTM)52.3%
Operating margin (TTM)26.6%
Net margin (TTM)22.7%
SectorIndustrials
IndustryIndustrial - Machinery
CountryUS
Data as of2026-01-05
Moat score
67/ 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 Graco Inc.'s moat claims, evidence, and risks.

View GGG analysis

Comparison highlights

  • Moat score gap: Automatic Data Processing, Inc. leads (71 / 100 vs 67 / 100 for Graco Inc.).
  • Segment focus: Automatic Data Processing, Inc. has 2 segments (67.5% in Employer Services); Graco Inc. has 3 segments (49.4% in Contractor).
  • Moat breadth: Automatic Data Processing, Inc. has 7 moat types across 4 domains; Graco Inc. has 7 across 2.

Primary market context

Automatic Data Processing, Inc.

Employer Services

Market

Payroll processing and cloud HCM (HR, time, talent, tax, benefits) software and outsourcing

Geography

Global

Customer

Businesses (SMB to large enterprise)

Role

SaaS and managed services provider

Revenue share

67.5%

Graco Inc.

Contractor

Market

Professional and prosumer paint/coatings application equipment (airless sprayers, texture sprayers, line stripers, plural-component proportioners)

Geography

Global

Customer

Professional contractors and trades; DIY consumers via retail channels

Role

Equipment OEM / brand owner

Revenue share

49.4%

Side-by-side metrics

Automatic Data Processing, Inc.
Graco Inc.
Ticker / Exchange
ADP - NASDAQ
GGG - New York Stock Exchange
Market cap (USD)
$104.1B
$13.8B
Gross margin (TTM)
49.3%
52.3%
Operating margin (TTM)
19.2%
26.6%
Net margin (TTM)
19.8%
22.7%
Sector
Technology
Industrials
Industry
Staffing & Employment Services
Industrial - Machinery
HQ country
US
US
Primary segment
Employer Services
Contractor
Market structure
Oligopoly
Oligopoly
Market share
16.7% (reported)
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
71 / 100
67 / 100
Moat domains
Demand, Legal, Supply, Financial
Demand, Supply
Last update
2025-12-30
2026-01-05

Moat coverage

Shared moat types

No overlap yet.

Automatic Data Processing, Inc. strengths

Switching Costs GeneralCompliance AdvantageScale Economies Unit CostFloat PrepaymentRegulated Standards PipeSuite BundlingUnderwriting Risk Pooling

Graco Inc. strengths

Brand TrustDistribution ControlOperational ExcellenceService Field NetworkDesign In QualificationInstalled Base ConsumablesScope Economies

Segment mix

Automatic Data Processing, Inc. segments

Full profile >

Employer Services

Oligopoly

67.5%

Professional Employer Organization (PEO) Services

Competitive

32.5%

Graco Inc. segments

Full profile >

Contractor

Oligopoly

49.4%

Industrial

Oligopoly

43.1%

Expansion Markets

Competitive

7.5%

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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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.