VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Saturday, January 3, 2026

Stock Comparison

Microchip Technology Incorporated vs Xero Limited

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

Microchip Technology Incorporated

MCHP · NASDAQ

Market cap (USD)$35.2B
Gross margin (TTM)50.1%
Operating margin (TTM)1.4%
Net margin (TTM)-4.4%
SectorTechnology
IndustrySemiconductors
CountryUS
Data as of2025-12-29
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 Microchip Technology Incorporated's moat claims, evidence, and risks.

View MCHP 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: both at 71 / 100.
  • Segment focus: Microchip Technology Incorporated has 3 segments (51.1% in Mixed-signal Microcontrollers); Xero Limited has 2 segments.
  • Moat breadth: Microchip Technology Incorporated has 6 moat types across 3 domains; Xero Limited has 7 across 3.

Primary market context

Microchip Technology Incorporated

Mixed-signal Microcontrollers

Market

Embedded microcontrollers & microprocessors for embedded control

Geography

Global

Customer

OEMs and distributors (embedded system designers)

Role

IDM / hybrid manufacturing semiconductor supplier

Revenue share

51.1%

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

Microchip Technology Incorporated
Xero Limited
Ticker / Exchange
MCHP - NASDAQ
XRO - Australian Securities Exchange
Market cap (USD)
$35.2B
n/a
Gross margin (TTM)
50.1%
n/a
Operating margin (TTM)
1.4%
n/a
Net margin (TTM)
-4.4%
n/a
Sector
Technology
Technology
Industry
Semiconductors
n/a
HQ country
US
NZ
Primary segment
Mixed-signal Microcontrollers
Core Accounting Subscription Platform
Market structure
Oligopoly
Oligopoly
Market share
6%-12% (implied)
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
71 / 100
71 / 100
Moat domains
Demand, Supply, Legal
Demand, Network, Financial
Last update
2025-12-29
2026-01-02

Moat coverage

Shared moat types

Switching Costs General

Microchip Technology Incorporated strengths

Training Org Change CostsOperational ExcellenceScope EconomiesIP Choke PointDesign In Qualification

Xero Limited strengths

Data Workflow LockinTwo Sided NetworkBenchmark Pricing PowerInteroperability HubEcosystem ComplementsSuite Bundling

Segment mix

Microchip Technology Incorporated segments

Full profile >

Mixed-signal Microcontrollers

Oligopoly

51.1%

Analog

Oligopoly

26.3%

Other (FPGA, memory, timing systems, manufacturing services, SuperFlash licensing)

Oligopoly

22.6%

Xero Limited segments

Full profile >

Core Accounting Subscription Platform

Oligopoly

n/a

Platform Services (Payments, Payroll, App Ecosystem)

Competitive

n/a

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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.