VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 8, 2026

Stock Comparison

Broadridge Financial Solutions, Inc. vs Watsco, Inc.

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

Broadridge Financial Solutions, Inc.

BR · New York Stock Exchange

Market cap (USD)$26.1B
Gross margin (TTM)31.3%
Operating margin (TTM)17.6%
Net margin (TTM)13.1%
SectorTechnology
IndustrySoftware - Services
CountryUS
Data as of2025-12-26
Moat score
91/ 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 Broadridge Financial Solutions, Inc.'s moat claims, evidence, and risks.

View BR 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: Broadridge Financial Solutions, Inc. leads (91 / 100 vs 72 / 100 for Watsco, Inc.).
  • Segment focus: Broadridge Financial Solutions, Inc. has 2 segments (74.2% in Investor Communication Solutions); Watsco, Inc. has 1 segment (100% in HVAC/R Distribution).
  • Primary market structure: Quasi-Monopoly vs Competitive. Pricing power: Moderate vs Moderate.
  • Moat breadth: Broadridge Financial Solutions, Inc. has 5 moat types across 4 domains; Watsco, Inc. has 4 across 3.

Primary market context

Broadridge Financial Solutions, Inc.

Investor Communication Solutions

Market

Proxy distribution, vote processing, and regulatory investor communications

Geography

Primarily United States (with select international services)

Customer

Public companies, mutual funds, banks and broker-dealers, asset managers

Role

Outsourced intermediary for shareholder communications and proxy voting workflows

Revenue share

74.2%

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

Broadridge Financial Solutions, Inc.
Watsco, Inc.
Ticker / Exchange
BR - New York Stock Exchange
WSO - New York Stock Exchange
Market cap (USD)
$26.1B
$14.4B
Gross margin (TTM)
31.3%
28.3%
Operating margin (TTM)
17.6%
10.2%
Net margin (TTM)
13.1%
7.4%
Sector
Technology
Industrials
Industry
Software - Services
Industrial - Distribution
HQ country
US
US
Primary segment
Investor Communication Solutions
HVAC/R Distribution
Market structure
Quasi-Monopoly
Competitive
Market share
85%-95% (estimated)
9%-12% (implied)
HHI estimate
8,200
n/a
Pricing power
Moderate
Moderate
Moat score
91 / 100
72 / 100
Moat domains
Legal, Supply, Network, Demand
Supply, Legal, Demand
Last update
2025-12-26
2026-01-05

Moat coverage

Shared moat types

Scale Economies Unit Cost

Broadridge Financial Solutions, Inc. strengths

Regulated Standards PipeTwo Sided NetworkSwitching Costs GeneralInteroperability Hub

Watsco, Inc. strengths

Physical Network DensityContractual ExclusivityData Workflow Lockin

Segment mix

Broadridge Financial Solutions, Inc. segments

Full profile >

Investor Communication Solutions

Quasi-Monopoly

74.2%

Global Technology and Operations

Oligopoly

25.8%

Watsco, Inc. segments

Full profile >

HVAC/R Distribution

Competitive

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.