VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Stock Comparison

L3Harris Technologies, Inc. vs Paychex, Inc.

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

L3Harris Technologies, Inc.

LHX · NYSE

Market cap (USD)$66.6B
Gross margin (TTM)24.1%
Operating margin (TTM)9.9%
Net margin (TTM)7.4%
SectorIndustrials
IndustryAerospace & Defense
CountryUS
Data as of2026-01-02
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 L3Harris Technologies, Inc.'s moat claims, evidence, and risks.

View LHX analysis

Paychex, Inc.

PAYX · NASDAQ Global Select Market

Market cap (USD)$32.8B
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: L3Harris Technologies, Inc. leads (72 / 100 vs 66 / 100 for Paychex, Inc.).
  • Segment focus: L3Harris Technologies, Inc. has 4 segments (31.9% in Space & Airborne Systems); Paychex, Inc. has 3 segments (73% in Management Solutions).
  • Moat breadth: L3Harris Technologies, Inc. has 8 moat types across 3 domains; Paychex, Inc. has 7 across 4.

Primary market context

L3Harris Technologies, Inc.

Space & Airborne Systems

Market

Defense & intelligence space and airborne mission systems (payloads, sensors, avionics, mission networks)

Geography

Global (U.S.-centric demand)

Customer

Government defense/intelligence agencies, prime contractors, and allied governments

Role

Prime contractor / subsystem integrator

Revenue share

31.9%

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

L3Harris Technologies, Inc.
Paychex, Inc.
Ticker / Exchange
LHX - NYSE
PAYX - NASDAQ Global Select Market
Market cap (USD)
$66.6B
$32.8B
Gross margin (TTM)
24.1%
73.4%
Operating margin (TTM)
9.9%
37.1%
Net margin (TTM)
7.4%
26.5%
Sector
Industrials
Industrials
Industry
Aerospace & Defense
Staffing & Employment Services
HQ country
US
US
Primary segment
Space & Airborne Systems
Management Solutions
Market structure
Oligopoly
Oligopoly
Market share
n/a
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
72 / 100
66 / 100
Moat domains
Legal, Demand, Supply
Demand, Supply, Legal, Financial
Last update
2026-01-02
2026-01-04

Moat coverage

Shared moat types

Compliance AdvantageSwitching Costs General

L3Harris Technologies, Inc. strengths

Government Contracting RelationshipsDesign In QualificationCapex Knowhow ScaleProcurement InertiaCapacity MoatKeystone Component

Paychex, Inc. strengths

Data Workflow LockinSuite BundlingService Field NetworkUnderwriting Risk PoolingFloat Prepayment

Segment mix

L3Harris Technologies, Inc. segments

Full profile >

Space & Airborne Systems

Oligopoly

31.9%

Integrated Mission Systems

Oligopoly

31.8%

Communication Systems

Oligopoly

25.4%

Aerojet Rocketdyne

Duopoly

10.9%

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.

View the moat stocks list

Looking for expansion-stage stocks?

Proven models entering the expansion stage with unit economics that work.

View expansion-stage stocks

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.