VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 8, 2026

Stock Comparison

Paychex, Inc. vs The Sherwin-Williams Company

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

The Sherwin-Williams Company

SHW · New York Stock Exchange

Market cap (USD)$82.5B
Gross margin (TTM)48.9%
Operating margin (TTM)15.9%
Net margin (TTM)11.1%
SectorMaterials
IndustryChemicals - Specialty
CountryUS
Data as of2025-12-31
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 The Sherwin-Williams Company's moat claims, evidence, and risks.

View SHW analysis

Comparison highlights

  • Moat score gap: The Sherwin-Williams Company leads (84 / 100 vs 66 / 100 for Paychex, Inc.).
  • Segment focus: Paychex, Inc. has 3 segments (73% in Management Solutions); The Sherwin-Williams Company has 3 segments (57.1% in Paint Stores Group).
  • Primary market structure: Oligopoly vs Quasi-Monopoly. Pricing power: Moderate vs Strong.
  • Moat breadth: Paychex, Inc. has 7 moat types across 4 domains; The Sherwin-Williams Company has 6 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%

The Sherwin-Williams Company

Paint Stores Group

Market

Company-operated paint & coatings retail (architectural + related products)

Geography

United States, Canada, Caribbean

Customer

Professional contractors and DIY homeowners

Role

Manufacturer-owned retail / distribution

Revenue share

57.1%

Side-by-side metrics

Paychex, Inc.
The Sherwin-Williams Company
Ticker / Exchange
PAYX - NASDAQ Global Select Market
SHW - New York Stock Exchange
Market cap (USD)
$39.4B
$82.5B
Gross margin (TTM)
73.4%
48.9%
Operating margin (TTM)
37.1%
15.9%
Net margin (TTM)
26.5%
11.1%
Sector
Industrials
Materials
Industry
Staffing & Employment Services
Chemicals - Specialty
HQ country
US
US
Primary segment
Management Solutions
Paint Stores Group
Market structure
Oligopoly
Quasi-Monopoly
Market share
n/a
69.4% (estimated)
HHI estimate
n/a
n/a
Pricing power
Moderate
Strong
Moat score
66 / 100
84 / 100
Moat domains
Demand, Supply, Legal, Financial
Supply, Demand, Legal
Last update
2026-01-04
2025-12-31

Moat coverage

Shared moat types

Service Field NetworkCompliance AdvantageSwitching Costs General

Paychex, Inc. strengths

Data Workflow LockinSuite BundlingUnderwriting Risk PoolingFloat Prepayment

The Sherwin-Williams Company strengths

Distribution ControlBrand TrustScope Economies

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%

The Sherwin-Williams Company segments

Full profile >

Paint Stores Group

Quasi-Monopoly

57.1%

Consumer Brands Group

Oligopoly

13.5%

Performance Coatings Group

Oligopoly

29.4%

Want the full wide moat stocks list?

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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.