VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 8, 2026

Stock Comparison

ResMed Inc. vs Xero Limited

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

ResMed Inc.

RMD · New York Stock Exchange

Market cap (USD)$36B
Gross margin (TTM)60.1%
Operating margin (TTM)33.2%
Net margin (TTM)27.4%
SectorHealthcare
IndustryMedical - Instruments & Supplies
CountryUS
Data as of2026-01-04
Moat score
76/ 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 ResMed Inc.'s moat claims, evidence, and risks.

View RMD analysis

Xero Limited

XRO · Australian Securities Exchange

Market cap (USD)$18.2B
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: ResMed Inc. leads (76 / 100 vs 71 / 100 for Xero Limited).
  • Segment focus: ResMed Inc. has 2 segments (87.5% in Sleep and Breathing Health); Xero Limited has 2 segments.
  • Moat breadth: ResMed Inc. has 7 moat types across 2 domains; Xero Limited has 7 across 3.

Primary market context

ResMed Inc.

Sleep and Breathing Health

Market

Sleep apnea and respiratory care devices and related consumables (PAP, masks, ventilation) plus connected monitoring services

Geography

Global

Customer

DME/HME providers, sleep clinics, hospitals, patients

Role

Medical device OEM + connected care software/data services

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

ResMed Inc.
Xero Limited
Ticker / Exchange
RMD - New York Stock Exchange
XRO - Australian Securities Exchange
Market cap (USD)
$36B
$18.2B
Gross margin (TTM)
60.1%
85.3%
Operating margin (TTM)
33.2%
17.6%
Net margin (TTM)
27.4%
11.5%
Sector
Healthcare
Technology
Industry
Medical - Instruments & Supplies
Software - Application
HQ country
US
NZ
Primary segment
Sleep and Breathing Health
Core Accounting Subscription Platform
Market structure
Oligopoly
Oligopoly
Market share
58%-66% (estimated)
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
76 / 100
71 / 100
Moat domains
Demand, Legal
Demand, Network, Financial
Last update
2026-01-04
2026-01-02

Moat coverage

Shared moat types

Data Workflow Lockin

ResMed Inc. strengths

Installed Base ConsumablesBrand TrustCompliance AdvantageIP Choke PointLong Term ContractsTraining Org Change Costs

Xero Limited strengths

Switching Costs GeneralTwo Sided NetworkBenchmark Pricing PowerInteroperability HubEcosystem ComplementsSuite Bundling

Segment mix

ResMed Inc. segments

Full profile >

Sleep and Breathing Health

Oligopoly

87.5%

Residential Care Software

Competitive

12.5%

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.

View the moat stocks list

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.