VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 8, 2026

Stock Comparison

Automatic Data Processing, Inc. vs Netflix, 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

Netflix, Inc.

NFLX · NASDAQ

Market cap (USD)$387.5B
Gross margin (TTM)48.1%
Operating margin (TTM)29.1%
Net margin (TTM)24.1%
SectorCommunication Services
IndustryEntertainment
CountryUS
Data as of2026-01-05
Moat score
65/ 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 Netflix, Inc.'s moat claims, evidence, and risks.

View NFLX analysis

Comparison highlights

  • Moat score gap: Automatic Data Processing, Inc. leads (71 / 100 vs 65 / 100 for Netflix, Inc.).
  • Segment focus: Automatic Data Processing, Inc. has 2 segments (67.5% in Employer Services); Netflix, Inc. has 1 segment (100% in Streaming entertainment platform).
  • Moat breadth: Automatic Data Processing, Inc. has 7 moat types across 4 domains; Netflix, Inc. has 5 across 4.

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%

Netflix, Inc.

Streaming entertainment platform

Market

Paid streaming video entertainment (SVOD/AVOD)

Geography

Global

Customer

Consumers (B2C); advertisers via ad-supported inventory

Role

Streaming platform operator; content producer/licensor

Revenue share

100%

Side-by-side metrics

Automatic Data Processing, Inc.
Netflix, Inc.
Ticker / Exchange
ADP - NASDAQ
NFLX - NASDAQ
Market cap (USD)
$104.1B
$387.5B
Gross margin (TTM)
49.3%
48.1%
Operating margin (TTM)
19.2%
29.1%
Net margin (TTM)
19.8%
24.1%
Sector
Technology
Communication Services
Industry
Staffing & Employment Services
Entertainment
HQ country
US
US
Primary segment
Employer Services
Streaming entertainment platform
Market structure
Oligopoly
Oligopoly
Market share
16.7% (reported)
8.2%-8.4% (reported)
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
71 / 100
65 / 100
Moat domains
Demand, Legal, Supply, Financial
Network, Supply, Legal, Financial
Last update
2025-12-30
2026-01-05

Moat coverage

Shared moat types

Scale Economies Unit CostFloat Prepayment

Automatic Data Processing, Inc. strengths

Switching Costs GeneralCompliance AdvantageRegulated Standards PipeSuite BundlingUnderwriting Risk Pooling

Netflix, Inc. strengths

Data Network EffectsContent Rights CurrencyPhysical Network Density

Segment mix

Automatic Data Processing, Inc. segments

Full profile >

Employer Services

Oligopoly

67.5%

Professional Employer Organization (PEO) Services

Competitive

32.5%

Netflix, Inc. segments

Full profile >

Streaming entertainment platform

Oligopoly

100%

Want the full wide moat stocks list?

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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.