VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Saturday, January 3, 2026

Stock Comparison

Microsoft Corporation vs Xero Limited

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

Microsoft Corporation

MSFT · Nasdaq Global Select Market

Market cap (USD)$3.5T
Gross margin (TTM)68.8%
Operating margin (TTM)46.3%
Net margin (TTM)35.7%
SectorTechnology
IndustrySoftware - Infrastructure
CountryUS
Data as of2025-12-21
Moat score
84/ 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 Microsoft Corporation's moat claims, evidence, and risks.

View MSFT 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: Microsoft Corporation leads (84 / 100 vs 71 / 100 for Xero Limited).
  • Segment focus: Microsoft Corporation has 3 segments (42.9% in Productivity and Business Processes); Xero Limited has 2 segments.
  • Primary market structure: Oligopoly vs Oligopoly. Pricing power: Strong vs Moderate.
  • Moat breadth: Microsoft Corporation has 9 moat types across 4 domains; Xero Limited has 7 across 3.

Primary market context

Microsoft Corporation

Productivity and Business Processes

Market

Enterprise productivity & collaboration suites, business applications, and professional network platforms

Geography

Global

Customer

Enterprises, SMBs, consumers, recruiters/advertisers

Role

SaaS platform + professional network

Revenue share

42.9%

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

Microsoft Corporation
Xero Limited
Ticker / Exchange
MSFT - Nasdaq Global Select Market
XRO - Australian Securities Exchange
Market cap (USD)
$3.5T
n/a
Gross margin (TTM)
68.8%
n/a
Operating margin (TTM)
46.3%
n/a
Net margin (TTM)
35.7%
n/a
Sector
Technology
Technology
Industry
Software - Infrastructure
n/a
HQ country
US
NZ
Primary segment
Productivity and Business Processes
Core Accounting Subscription Platform
Market structure
Oligopoly
Oligopoly
Market share
n/a
n/a
HHI estimate
n/a
n/a
Pricing power
Strong
Moderate
Moat score
84 / 100
71 / 100
Moat domains
Demand, Network, Supply, Legal
Demand, Network, Financial
Last update
2025-12-21
2026-01-02

Moat coverage

Shared moat types

Suite BundlingData Workflow LockinTwo Sided NetworkEcosystem Complements

Microsoft Corporation strengths

Long Term ContractsCapex Knowhow ScaleOperational ExcellenceDefault OS GatewayContent Rights Currency

Xero Limited strengths

Switching Costs GeneralBenchmark Pricing PowerInteroperability Hub

Segment mix

Microsoft Corporation segments

Full profile >

Productivity and Business Processes

Oligopoly

42.9%

Intelligent Cloud

Oligopoly

37.7%

More Personal Computing

Quasi-Monopoly

19.4%

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.

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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.