VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 8, 2026

Stock Comparison

Canadian Pacific Kansas City Limited vs Paychex, Inc.

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

Canadian Pacific Kansas City Limited

CP · New York Stock Exchange

Market cap (USD)$67.3B
Gross margin (TTM)56.7%
Operating margin (TTM)37%
Net margin (TTM)28.4%
SectorIndustrials
IndustryRailroads
CountryCA
Data as of2025-12-30
Moat score
70/ 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 Canadian Pacific Kansas City Limited's moat claims, evidence, and risks.

View CP 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 gap: Canadian Pacific Kansas City Limited leads (70 / 100 vs 66 / 100 for Paychex, Inc.).
  • Segment focus: Canadian Pacific Kansas City Limited has 4 segments (46% in Merchandise Freight); Paychex, Inc. has 3 segments (73% in Management Solutions).
  • Moat breadth: Canadian Pacific Kansas City Limited has 4 moat types across 2 domains; Paychex, Inc. has 7 across 4.

Primary market context

Canadian Pacific Kansas City Limited

Merchandise Freight

Market

North American carload rail freight (industrial and consumer commodities)

Geography

Canada, United States, Mexico

Customer

Industrial shippers and manufacturers across multiple commodity groups

Role

Rail carrier + logistics/transload provider

Revenue share

46%

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

Canadian Pacific Kansas City Limited
Paychex, Inc.
Ticker / Exchange
CP - New York Stock Exchange
PAYX - NASDAQ Global Select Market
Market cap (USD)
$67.3B
$39.4B
Gross margin (TTM)
56.7%
73.4%
Operating margin (TTM)
37%
37.1%
Net margin (TTM)
28.4%
26.5%
Sector
Industrials
Industrials
Industry
Railroads
Staffing & Employment Services
HQ country
CA
US
Primary segment
Merchandise Freight
Management Solutions
Market structure
Oligopoly
Oligopoly
Market share
n/a
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
70 / 100
66 / 100
Moat domains
Legal, Supply
Demand, Supply, Legal, Financial
Last update
2025-12-30
2026-01-04

Moat coverage

Shared moat types

No overlap yet.

Canadian Pacific Kansas City Limited strengths

Permits Rights Of WayPhysical Network DensityOperational ExcellenceDistribution Control

Paychex, Inc. strengths

Data Workflow LockinSuite BundlingService Field NetworkCompliance AdvantageUnderwriting Risk PoolingSwitching Costs GeneralFloat Prepayment

Segment mix

Canadian Pacific Kansas City Limited segments

Full profile >

Bulk Freight

Oligopoly

34.2%

Merchandise Freight

Oligopoly

46%

Intermodal Freight

Competitive

17.6%

Non-freight and Other

Competitive

2.2%

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?

Browse the full ranking of wide moat stocks, updated with moat scores and segment context.

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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.