VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Wednesday, January 7, 2026

Stock Comparison

The Home Depot, Inc. vs Paychex, Inc.

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

The Home Depot, Inc.

HD · New York Stock Exchange

Market cap (USD)$342.5B
Gross margin (TTM)33.4%
Operating margin (TTM)13%
Net margin (TTM)8.8%
SectorConsumer
IndustryHome Improvement
CountryUS
Data as of2025-12-30
Moat score
69/ 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 The Home Depot, Inc.'s moat claims, evidence, and risks.

View HD 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: The Home Depot, Inc. leads (69 / 100 vs 66 / 100 for Paychex, Inc.).
  • Segment focus: The Home Depot, Inc. has 2 segments (96% in Primary segment - North American home improvement retail (stores + online)); Paychex, Inc. has 3 segments (73% in Management Solutions).
  • Primary market structure: Competitive vs Oligopoly. Pricing power: Weak vs Moderate.
  • Moat breadth: The Home Depot, Inc. has 4 moat types across 2 domains; Paychex, Inc. has 7 across 4.

Primary market context

The Home Depot, Inc.

Primary segment - North American home improvement retail (stores + online)

Market

Home improvement retail (omnichannel)

Geography

North America (US, Canada, Mexico)

Customer

DIY homeowners and professional contractors

Role

Retailer

Revenue share

96%

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

The Home Depot, Inc.
Paychex, Inc.
Ticker / Exchange
HD - New York Stock Exchange
PAYX - NASDAQ Global Select Market
Market cap (USD)
$342.5B
$39.4B
Gross margin (TTM)
33.4%
73.4%
Operating margin (TTM)
13%
37.1%
Net margin (TTM)
8.8%
26.5%
Sector
Consumer
Industrials
Industry
Home Improvement
Staffing & Employment Services
HQ country
US
US
Primary segment
Primary segment - North American home improvement retail (stores + online)
Management Solutions
Market structure
Competitive
Oligopoly
Market share
n/a
n/a
HHI estimate
n/a
n/a
Pricing power
Weak
Moderate
Moat score
69 / 100
66 / 100
Moat domains
Supply, Demand
Demand, Supply, Legal, Financial
Last update
2025-12-30
2026-01-04

Moat coverage

Shared moat types

No overlap yet.

The Home Depot, Inc. strengths

Physical Network DensityDistribution ControlProcurement InertiaScale Economies Unit Cost

Paychex, Inc. strengths

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

Segment mix

The Home Depot, Inc. segments

Full profile >

Primary segment - North American home improvement retail (stores + online)

Competitive

96%

Other - Specialty trade distribution (SRS: roofing, landscape, pool)

Competitive

4%

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.