VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Wednesday, January 7, 2026

Stock Comparison

Nestle S.A. vs Watsco, Inc.

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

Nestle S.A.

NESN · SIX Swiss Exchange

Market cap (USD)$195.8B
Gross margin (TTM)46.8%
Operating margin (TTM)15.5%
Net margin (TTM)11.8%
SectorConsumer
IndustryPackaged Foods
CountryCH
Data as of2025-12-30
Moat score
57/ 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 Nestle S.A.'s moat claims, evidence, and risks.

View NESN 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: Watsco, Inc. leads (72 / 100 vs 57 / 100 for Nestle S.A.).
  • Segment focus: Nestle S.A. has 7 segments (26.9% in Powdered and Liquid Beverages); Watsco, Inc. has 1 segment (100% in HVAC/R Distribution).
  • Primary market structure: Oligopoly vs Competitive. Pricing power: Moderate vs Moderate.
  • Moat breadth: Nestle S.A. has 6 moat types across 3 domains; Watsco, Inc. has 4 across 3.

Primary market context

Nestle S.A.

Powdered and Liquid Beverages

Market

Packaged coffee (instant, roast and ground, portioned) and other powdered beverages (cocoa/malt, creamers)

Geography

Global

Customer

Consumers (end-users) via retail and e-commerce; plus out-of-home channels

Role

Branded manufacturer and marketer; system operator for portioned coffee (machines + capsules)

Revenue share

26.9%

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

Nestle S.A.
Watsco, Inc.
Ticker / Exchange
NESN - SIX Swiss Exchange
WSO - New York Stock Exchange
Market cap (USD)
$195.8B
$14.4B
Gross margin (TTM)
46.8%
28.3%
Operating margin (TTM)
15.5%
10.2%
Net margin (TTM)
11.8%
7.4%
Sector
Consumer
Industrials
Industry
Packaged Foods
Industrial - Distribution
HQ country
CH
US
Primary segment
Powdered and Liquid Beverages
HVAC/R Distribution
Market structure
Oligopoly
Competitive
Market share
25% (reported)
9%-12% (implied)
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
57 / 100
72 / 100
Moat domains
Demand, Supply, Legal
Supply, Legal, Demand
Last update
2025-12-30
2026-01-05

Moat coverage

Shared moat types

No overlap yet.

Nestle S.A. strengths

Brand TrustPreferential Input AccessInstalled Base ConsumablesLearning Curve YieldDistribution ControlCompliance Advantage

Watsco, Inc. strengths

Physical Network DensityContractual ExclusivityScale Economies Unit CostData Workflow Lockin

Segment mix

Nestle S.A. segments

Full profile >

Powdered and Liquid Beverages

Oligopoly

26.9%

PetCare

Oligopoly

20.7%

Nutrition and Health Science

Oligopoly

16.6%

Prepared dishes and cooking aids

Competitive

11.7%

Milk products and Ice cream

Competitive

11.4%

Confectionery

Oligopoly

9.2%

Water

Competitive

3.5%

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.