VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Wednesday, January 7, 2026

Stock Comparison

Huntington Ingalls Industries, Inc. vs Watsco, Inc.

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

Huntington Ingalls Industries, Inc.

HII · New York Stock Exchange

Market cap (USD)$14.3B
Gross margin (TTM)12.5%
Operating margin (TTM)4.8%
Net margin (TTM)4.7%
SectorIndustrials
IndustryAerospace & Defense
CountryUS
Data as of2025-12-23
Moat score
83/ 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 Huntington Ingalls Industries, Inc.'s moat claims, evidence, and risks.

View HII 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: Huntington Ingalls Industries, Inc. leads (83 / 100 vs 72 / 100 for Watsco, Inc.).
  • Segment focus: Huntington Ingalls Industries, Inc. has 3 segments (51.7% in Newport News Shipbuilding (Nuclear Shipbuilding)); Watsco, Inc. has 1 segment (100% in HVAC/R Distribution).
  • Primary market structure: Quasi-Monopoly vs Competitive. Pricing power: Moderate vs Moderate.
  • Moat breadth: Huntington Ingalls Industries, Inc. has 6 moat types across 3 domains; Watsco, Inc. has 4 across 3.

Primary market context

Huntington Ingalls Industries, Inc.

Newport News Shipbuilding (Nuclear Shipbuilding)

Market

U.S. Navy nuclear shipbuilding and carrier lifecycle services (CVN construction/RCOH/inactivation + SSN/SSBN construction)

Geography

United States

Customer

U.S. Government (U.S. Navy)

Role

Prime contractor shipyard / integrator

Revenue share

51.7%

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

Huntington Ingalls Industries, Inc.
Watsco, Inc.
Ticker / Exchange
HII - New York Stock Exchange
WSO - New York Stock Exchange
Market cap (USD)
$14.3B
$14.4B
Gross margin (TTM)
12.5%
28.3%
Operating margin (TTM)
4.8%
10.2%
Net margin (TTM)
4.7%
7.4%
Sector
Industrials
Industrials
Industry
Aerospace & Defense
Industrial - Distribution
HQ country
US
US
Primary segment
Newport News Shipbuilding (Nuclear Shipbuilding)
HVAC/R Distribution
Market structure
Quasi-Monopoly
Competitive
Market share
n/a
9%-12% (implied)
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
83 / 100
72 / 100
Moat domains
Legal, Supply, Demand
Supply, Legal, Demand
Last update
2025-12-23
2026-01-05

Moat coverage

Shared moat types

Contractual Exclusivity

Huntington Ingalls Industries, Inc. strengths

Capex Knowhow ScaleCompliance AdvantageDesign In QualificationLong Term ContractsGovernment Contracting Relationships

Watsco, Inc. strengths

Physical Network DensityScale Economies Unit CostData Workflow Lockin

Segment mix

Huntington Ingalls Industries, Inc. segments

Full profile >

Newport News Shipbuilding (Nuclear Shipbuilding)

Quasi-Monopoly

51.7%

Ingalls Shipbuilding (Non-Nuclear Shipbuilding)

Quasi-Monopoly

23.9%

Mission Technologies (Defense Tech & Services)

Competitive

24.4%

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.