VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 1, 2026

Stock Comparison

Costco Wholesale Corporation vs Illinois Tool Works Inc.

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

Costco Wholesale Corporation

COST · Nasdaq Global Select Market

Market cap (USD)$379.8B
SectorConsumer
CountryUS
Data as of2025-12-21
Moat score
80/ 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 Costco Wholesale Corporation's moat claims, evidence, and risks.

View COST analysis

Illinois Tool Works Inc.

ITW · New York Stock Exchange

Market cap (USD)
SectorIndustrials
CountryUS
Data as of2025-12-31
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 Illinois Tool Works Inc.'s moat claims, evidence, and risks.

View ITW analysis

Comparison highlights

  • Moat score gap: Costco Wholesale Corporation leads (80 / 100 vs 66 / 100 for Illinois Tool Works Inc.).
  • Segment focus: Costco Wholesale Corporation has 2 segments (98.1% in Warehouse club retail); Illinois Tool Works Inc. has 7 segments (20% in Automotive OEM).
  • Primary market structure: Oligopoly vs Competitive. Pricing power: Weak vs Moderate.
  • Moat breadth: Costco Wholesale Corporation has 6 moat types across 3 domains; Illinois Tool Works Inc. has 8 across 3.

Primary market context

Costco Wholesale Corporation

Warehouse club retail

Market

Membership warehouse club retail (warehouse clubs, ancillary services, and e-commerce)

Geography

Global

Customer

Households and small businesses

Role

Retailer (membership club)

Revenue share

98.1%

Illinois Tool Works Inc.

Automotive OEM

Market

Automotive OEM engineered components and fasteners

Geography

Global

Customer

Automotive OEMs and Tier suppliers

Role

Component supplier

Revenue share

20%

Side-by-side metrics

Costco Wholesale Corporation
Illinois Tool Works Inc.
Ticker / Exchange
COST - Nasdaq Global Select Market
ITW - New York Stock Exchange
Market cap (USD)
$379.8B
n/a
Sector
Consumer
Industrials
HQ country
US
US
Primary segment
Warehouse club retail
Automotive OEM
Market structure
Oligopoly
Competitive
Market share
n/a
n/a
HHI estimate
n/a
n/a
Pricing power
Weak
Moderate
Moat score
80 / 100
66 / 100
Moat domains
Supply, Financial, Demand
Demand, Supply, Legal
Last update
2025-12-21
2025-12-31

Moat coverage

Shared moat types

Operational ExcellenceBrand Trust

Costco Wholesale Corporation strengths

Scale Economies Unit CostNegative Working CapitalHabit DefaultFloat Prepayment

Illinois Tool Works Inc. strengths

Design In QualificationService Field NetworkInstalled Base ConsumablesSwitching Costs GeneralFormulation and application engineering know-howIP Choke Point

Segment mix

Costco Wholesale Corporation segments

Full profile >

Warehouse club retail

Oligopoly

98.1%

Membership fees (subscription)

Oligopoly

1.9%

Illinois Tool Works Inc. segments

Full profile >

Automotive OEM

Competitive

20%

Food Equipment

Oligopoly

16.6%

Test & Measurement and Electronics

Oligopoly

17.7%

Welding

Oligopoly

11.6%

Polymers & Fluids

Competitive

11.1%

Construction Products

Competitive

12%

Specialty Products

Oligopoly

10.9%

Want the full wide moat stocks list?

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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.