VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Saturday, January 10, 2026

Stock Comparison

American Water Works Company, Inc. vs Watsco, Inc.

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

American Water Works Company, Inc.

AWK · New York Stock Exchange

Market cap (USD)$25B
Gross margin (TTM)
Operating margin (TTM)
Net margin (TTM)
SectorUtilities
Industry
CountryUS
Data as of2026-01-09
Moat score
79/ 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 American Water Works Company, Inc.'s moat claims, evidence, and risks.

View AWK analysis

Watsco, Inc.

WSO · New York Stock Exchange

Market cap (USD)$15.3B
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: American Water Works Company, Inc. leads (79 / 100 vs 72 / 100 for Watsco, Inc.).
  • Segment focus: American Water Works Company, Inc. has 2 segments (91.7% in Regulated Businesses); Watsco, Inc. has 1 segment (100% in HVAC/R Distribution).
  • Primary market structure: Monopoly vs Competitive. Pricing power: Moderate vs Moderate.
  • Moat breadth: American Water Works Company, Inc. has 8 moat types across 3 domains; Watsco, Inc. has 4 across 3.

Primary market context

American Water Works Company, Inc.

Regulated Businesses

Market

Regulated water and wastewater utility service in certificated/franchised territories

Geography

United States (14-state footprint)

Customer

Residential, commercial, industrial, public authority, fire service, and sale-for-resale customers

Role

Regulated utility owner/operator (water & wastewater)

Revenue share

91.7%

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

American Water Works Company, Inc.
Watsco, Inc.
Ticker / Exchange
AWK - New York Stock Exchange
WSO - New York Stock Exchange
Market cap (USD)
$25B
$15.3B
Gross margin (TTM)
n/a
28.3%
Operating margin (TTM)
n/a
10.2%
Net margin (TTM)
n/a
7.4%
Sector
Utilities
Industrials
Industry
n/a
Industrial - Distribution
HQ country
US
US
Primary segment
Regulated Businesses
HVAC/R Distribution
Market structure
Monopoly
Competitive
Market share
n/a
9%-12% (implied)
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
79 / 100
72 / 100
Moat domains
Legal, Supply, Demand
Supply, Legal, Demand
Last update
2026-01-09
2026-01-05

Moat coverage

Shared moat types

Physical Network DensityScale Economies Unit Cost

American Water Works Company, Inc. strengths

Concession LicensePermits Rights Of WayCompliance AdvantageLong Term ContractsGovernment Contracting RelationshipsOperational Excellence

Watsco, Inc. strengths

Contractual ExclusivityData Workflow Lockin

Segment mix

American Water Works Company, Inc. segments

Full profile >

Regulated Businesses

Monopoly

91.7%

Military and Contract Water Services (Other)

Duopoly

8.3%

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.