VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Wednesday, January 7, 2026

Stock Comparison

Broadcom Inc. vs Paychex, Inc.

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

Broadcom Inc.

AVGO · NASDAQ Global Select Market

Market cap (USD)$1.6T
Gross margin (TTM)67.8%
Operating margin (TTM)39.9%
Net margin (TTM)36.2%
SectorTechnology
IndustrySemiconductors
CountryUS
Data as of2025-12-30
Moat score
66/ 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 Broadcom Inc.'s moat claims, evidence, and risks.

View AVGO analysis

Paychex, Inc.

PAYX · NASDAQ Global Select Market

Market cap (USD)$39.4B
Gross margin (TTM)73.4%
Operating margin (TTM)37.1%
Net margin (TTM)26.5%
SectorIndustrials
IndustryStaffing & Employment Services
CountryUS
Data as of2026-01-04
Moat score
66/ 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 Paychex, Inc.'s moat claims, evidence, and risks.

View PAYX analysis

Comparison highlights

  • Moat score: both at 66 / 100.
  • Segment focus: Broadcom Inc. has 2 segments (57.7% in Semiconductor Solutions); Paychex, Inc. has 3 segments (73% in Management Solutions).
  • Moat breadth: Broadcom Inc. has 8 moat types across 4 domains; Paychex, Inc. has 7 across 4.

Primary market context

Broadcom Inc.

Semiconductor Solutions

Market

Fabless semiconductor solutions (data center and AI networking/custom silicon, connectivity, broadband, storage, industrial) plus semiconductor IP licensing

Geography

Global

Customer

Hyperscalers, OEMs, and contract manufacturers; sold via direct sales and distributors

Role

Fabless chip designer and IP licensor; outsources most wafer manufacturing and assembly/test

Revenue share

57.7%

Paychex, Inc.

Management Solutions

Market

Payroll processing and integrated HCM solutions for SMB and mid-market employers

Geography

United States (primarily)

Customer

Employers (SMB and mid-market)

Role

HCM SaaS + outsourced payroll/HR service provider

Revenue share

73%

Side-by-side metrics

Broadcom Inc.
Paychex, Inc.
Ticker / Exchange
AVGO - NASDAQ Global Select Market
PAYX - NASDAQ Global Select Market
Market cap (USD)
$1.6T
$39.4B
Gross margin (TTM)
67.8%
73.4%
Operating margin (TTM)
39.9%
37.1%
Net margin (TTM)
36.2%
26.5%
Sector
Technology
Industrials
Industry
Semiconductors
Staffing & Employment Services
HQ country
US
US
Primary segment
Semiconductor Solutions
Management Solutions
Market structure
Oligopoly
Oligopoly
Market share
n/a
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
66 / 100
66 / 100
Moat domains
Demand, Supply, Legal, Network
Demand, Supply, Legal, Financial
Last update
2025-12-30
2026-01-04

Moat coverage

Shared moat types

Switching Costs GeneralSuite Bundling

Broadcom Inc. strengths

Design In QualificationKeystone ComponentSupply Chain ControlIP Choke PointLong Term ContractsEcosystem Complements

Paychex, Inc. strengths

Data Workflow LockinService Field NetworkCompliance AdvantageUnderwriting Risk PoolingFloat Prepayment

Segment mix

Broadcom Inc. segments

Full profile >

Semiconductor Solutions

Oligopoly

57.7%

Infrastructure Software

Oligopoly

42.3%

Paychex, Inc. segments

Full profile >

Management Solutions

Oligopoly

73%

PEO and Insurance Solutions

Competitive

24.1%

Client funds float (interest on funds held for clients)

Oligopoly

2.9%

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.

View expansion-stage stocks

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.