VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 8, 2026

Stock Comparison

Paychex, Inc. vs RTX Corporation

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

Paychex, Inc.

PAYX · NASDAQ Global Select Market

Market cap (USD)$39.4B
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

RTX Corporation

RTX · New York Stock Exchange

Market cap (USD)$252B
Gross margin (TTM)20.1%
Operating margin (TTM)9.8%
Net margin (TTM)7.7%
SectorIndustrials
IndustryAerospace & Defense
CountryUS
Data as of2026-01-02
Moat score
69/ 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 RTX Corporation's moat claims, evidence, and risks.

View RTX analysis

Comparison highlights

  • Moat score gap: RTX Corporation leads (69 / 100 vs 66 / 100 for Paychex, Inc.).
  • Segment focus: Paychex, Inc. has 3 segments (73% in Management Solutions); RTX Corporation has 3 segments (34.8% in Pratt & Whitney).
  • Moat breadth: Paychex, Inc. has 7 moat types across 4 domains; RTX Corporation has 8 across 3.

Primary market context

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%

RTX Corporation

Pratt & Whitney

Market

Aircraft engines & aftermarket services (commercial and military)

Geography

Global

Customer

Airframers, airlines, governments

Role

Engine OEM + MRO

Revenue share

34.8%

Side-by-side metrics

Paychex, Inc.
RTX Corporation
Ticker / Exchange
PAYX - NASDAQ Global Select Market
RTX - New York Stock Exchange
Market cap (USD)
$39.4B
$252B
Gross margin (TTM)
73.4%
20.1%
Operating margin (TTM)
37.1%
9.8%
Net margin (TTM)
26.5%
7.7%
Sector
Industrials
Industrials
Industry
Staffing & Employment Services
Aerospace & Defense
HQ country
US
US
Primary segment
Management Solutions
Pratt & Whitney
Market structure
Oligopoly
Oligopoly
Market share
n/a
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
66 / 100
69 / 100
Moat domains
Demand, Supply, Legal, Financial
Demand, Legal, Supply
Last update
2026-01-04
2026-01-02

Moat coverage

Shared moat types

Service Field NetworkCompliance Advantage

Paychex, Inc. strengths

Data Workflow LockinSuite BundlingUnderwriting Risk PoolingSwitching Costs GeneralFloat Prepayment

RTX Corporation strengths

Design In QualificationInstalled Base ConsumablesRegulated Standards PipeCapex Knowhow ScaleGovernment Contracting RelationshipsLong Term Contracts

Segment mix

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%

RTX Corporation segments

Full profile >

Collins Aerospace

Oligopoly

32.1%

Pratt & Whitney

Oligopoly

34.8%

Raytheon

Oligopoly

32.9%

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.