VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

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Sunday, January 11, 2026

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Stock Comparison

REA Group Ltd vs Xero Limited

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

REA Group Ltd

REA · ASX

Market cap (USD)—

Gross margin (TTM)—

Operating margin (TTM)—

Net margin (TTM)—

SectorCommunication Services

Industry—

CountryAU

Data as of2026-01-09

Moat score

91/ 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 REA Group Ltd's moat claims, evidence, and risks.

View REA analysis

Xero Limited

XRO · Australian Securities Exchange

Market cap (USD)$18.3B

Gross margin (TTM)85.3%

Operating margin (TTM)17.6%

Net margin (TTM)11.5%

SectorTechnology

IndustrySoftware - Application

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: REA Group Ltd leads (91 / 100 vs 71 / 100 for Xero Limited).
Segment focus: REA Group Ltd has 3 segments (87.5% in Australia - Property & Online Advertising); Xero Limited has 2 segments.
Primary market structure: Duopoly vs Oligopoly. Pricing power: Strong vs Moderate.
Moat breadth: REA Group Ltd has 6 moat types across 3 domains; Xero Limited has 7 across 3.

Primary market context

REA Group Ltd

Australia - Property & Online Advertising

Market

Australian online property classifieds & digital real estate advertising (residential + commercial listings)

Geography

Australia

Customer

Real estate agents/agencies and developers (advertisers) + property seekers (consumers)

Role

Marketplace operator / media & advertising platform

Revenue share

87.5%

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

REA Group Ltd

Xero Limited

Ticker / Exchange

REA - ASX

XRO - Australian Securities Exchange

Market cap (USD)

n/a

$18.3B

Gross margin (TTM)

n/a

85.3%

Operating margin (TTM)

n/a

17.6%

Net margin (TTM)

n/a

11.5%

Sector

Communication Services

Technology

Industry

n/a

Software - Application

HQ country

Primary segment

Australia - Property & Online Advertising

Core Accounting Subscription Platform

Market structure

Duopoly

Oligopoly

Market share

78%-82% (implied)

n/a

HHI estimate

6,800

n/a

Pricing power

Strong

Moderate

Moat score

91 / 100

71 / 100

Moat domains

Network, Demand, Supply

Demand, Network, Financial

Last update

2026-01-09

2026-01-02

Moat coverage

Shared moat types

Two Sided NetworkData Workflow Lockin

REA Group Ltd strengths

Data Network EffectsBrand TrustDistribution ControlHabit Default

Xero Limited strengths

Switching Costs GeneralBenchmark Pricing PowerInteroperability HubEcosystem ComplementsSuite Bundling

Segment mix

REA Group Ltd segments

Full profile >

Australia - Property & Online Advertising

Duopoly

87.5%

Australia - Financial Services

Competitive

4.8%

India - Online Property Classifieds

Oligopoly

7.7%

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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Looking for expansion-stage stocks?

Proven models entering the expansion stage with unit economics that work.

View expansion-stage stocks

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.