VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

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Saturday, January 3, 2026

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Stock Comparison

Alphabet Inc. vs Xero Limited

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

Alphabet Inc.

GOOGL · The Nasdaq Stock Market

Market cap (USD)$3.7T

Gross margin (TTM)59.2%

Operating margin (TTM)32.2%

Net margin (TTM)32.2%

SectorCommunication Services

IndustryInternet Content & Information

CountryUS

Data as of2025-12-21

Moat score

86/ 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 Alphabet Inc.'s moat claims, evidence, and risks.

View GOOGL analysis

Xero Limited

XRO · Australian Securities Exchange

Market cap (USD)—

Gross margin (TTM)—

Operating margin (TTM)—

Net margin (TTM)—

SectorTechnology

Industry—

CountryNZ

Data as of2026-01-02

Moat score

71/ 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 Xero Limited's moat claims, evidence, and risks.

View XRO analysis

Comparison highlights

Moat score gap: Alphabet Inc. leads (86 / 100 vs 71 / 100 for Xero Limited).
Segment focus: Alphabet Inc. has 6 segments (56.6% in Google Search & other (Advertising)); Xero Limited has 2 segments.
Primary market structure: Quasi-Monopoly vs Oligopoly. Pricing power: Strong vs Moderate.
Moat breadth: Alphabet Inc. has 10 moat types across 4 domains; Xero Limited has 7 across 3.

Primary market context

Alphabet Inc.

Google Search & other (Advertising)

Market

Search advertising (intent-based digital ads)

Geography

Global

Customer

Advertisers (SMB to enterprise)

Role

Ad platform / publisher

Revenue share

56.6%

Xero Limited

Core Accounting Subscription Platform

Market

Cloud accounting software for small businesses and their advisors

Geography

Global

Customer

SMB; accountants & bookkeepers

Role

Software platform (SaaS)

Side-by-side metrics

Alphabet Inc.

Xero Limited

Ticker / Exchange

GOOGL - The Nasdaq Stock Market

XRO - Australian Securities Exchange

Market cap (USD)

$3.7T

n/a

Gross margin (TTM)

59.2%

n/a

Operating margin (TTM)

32.2%

n/a

Net margin (TTM)

32.2%

n/a

Sector

Communication Services

Technology

Industry

Internet Content & Information

n/a

HQ country

Primary segment

Google Search & other (Advertising)

Core Accounting Subscription Platform

Market structure

Quasi-Monopoly

Oligopoly

Market share

88%-91% (reported)

n/a

HHI estimate

8,115

n/a

Pricing power

Strong

Moderate

Moat score

86 / 100

71 / 100

Moat domains

Network, Demand, Legal, Supply

Demand, Network, Financial

Last update

2025-12-21

2026-01-02

Moat coverage

Shared moat types

Two Sided NetworkSwitching Costs GeneralEcosystem Complements

Alphabet Inc. strengths

Data Network EffectsHabit DefaultContent Rights CurrencyOperational ExcellenceDefault OS GatewayCapex Knowhow ScaleIncubation & patient capital

Xero Limited strengths

Data Workflow LockinBenchmark Pricing PowerInteroperability HubSuite Bundling

Segment mix

Alphabet Inc. segments

Full profile >

Google Search & other (Advertising)

Quasi-Monopoly

56.6%

YouTube (Advertising)

Oligopoly

10.3%

Google Network (Advertising)

Competitive

8.7%

Google Subscriptions, Platforms & Devices

Quasi-Monopoly

11.5%

Google Cloud

Oligopoly

12.4%

Other Bets

Competitive

0.5%

Xero Limited segments

Full profile >

Core Accounting Subscription Platform

Oligopoly

n/a

Platform Services (Payments, Payroll, App Ecosystem)

Competitive

n/a

Want the full wide moat stocks list?

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

View the moat stocks list

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.