VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 8, 2026

Stock Comparison

Eaton Corporation plc vs Watsco, Inc.

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

Eaton Corporation plc

ETN · New York Stock Exchange

Market cap (USD)$125.2B
Gross margin (TTM)38.1%
Operating margin (TTM)19.4%
Net margin (TTM)14.7%
SectorIndustrials
IndustryIndustrial - Machinery
CountryIE
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 Eaton Corporation plc's moat claims, evidence, and risks.

View ETN 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: Watsco, Inc. leads (72 / 100 vs 66 / 100 for Eaton Corporation plc).
  • Segment focus: Eaton Corporation plc has 5 segments (46% in Electrical Americas); Watsco, Inc. has 1 segment (100% in HVAC/R Distribution).
  • Primary market structure: Oligopoly vs Competitive. Pricing power: Moderate vs Moderate.
  • Moat breadth: Eaton Corporation plc has 7 moat types across 3 domains; Watsco, Inc. has 4 across 3.

Primary market context

Eaton Corporation plc

Electrical Americas

Market

Electrical components, power distribution systems/assemblies, and related services (Americas)

Geography

North and South America

Customer

Industrial, commercial/institutional, utilities, residential, and IT/data center customers (end users and channel partners)

Role

Manufacturer + systems/assembly provider + service provider

Revenue share

46%

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

Eaton Corporation plc
Watsco, Inc.
Ticker / Exchange
ETN - New York Stock Exchange
WSO - New York Stock Exchange
Market cap (USD)
$125.2B
$14.4B
Gross margin (TTM)
38.1%
28.3%
Operating margin (TTM)
19.4%
10.2%
Net margin (TTM)
14.7%
7.4%
Sector
Industrials
Industrials
Industry
Industrial - Machinery
Industrial - Distribution
HQ country
IE
US
Primary segment
Electrical Americas
HVAC/R Distribution
Market structure
Oligopoly
Competitive
Market share
n/a
9%-12% (implied)
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
66 / 100
72 / 100
Moat domains
Supply, Demand, Legal
Supply, Legal, Demand
Last update
2025-12-31
2026-01-05

Moat coverage

Shared moat types

No overlap yet.

Eaton Corporation plc strengths

Distribution ControlScope EconomiesDesign In QualificationCompliance AdvantageInstalled Base ConsumablesLong Term ContractsService Field Network

Watsco, Inc. strengths

Physical Network DensityContractual ExclusivityScale Economies Unit CostData Workflow Lockin

Segment mix

Eaton Corporation plc segments

Full profile >

Electrical Americas

Oligopoly

46%

Electrical Global

Oligopoly

25.1%

Aerospace

Oligopoly

15%

Vehicle

Competitive

11.2%

eMobility

Competitive

2.7%

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.