VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 8, 2026

Stock Comparison

The Charles Schwab Corporation vs Watsco, Inc.

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

The Charles Schwab Corporation

SCHW · New York Stock Exchange

Market cap (USD)$188.7B
Gross margin (TTM)84.4%
Operating margin (TTM)39%
Net margin (TTM)30.3%
SectorFinancials
IndustryFinancial - Capital Markets
CountryUS
Data as of2025-12-26
Moat score
74/ 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 Charles Schwab Corporation's moat claims, evidence, and risks.

View SCHW 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: The Charles Schwab Corporation leads (74 / 100 vs 72 / 100 for Watsco, Inc.).
  • Segment focus: The Charles Schwab Corporation has 2 segments (79.4% in Investor Services); Watsco, Inc. has 1 segment (100% in HVAC/R Distribution).
  • Primary market structure: Oligopoly vs Competitive. Pricing power: Weak vs Moderate.
  • Moat breadth: The Charles Schwab Corporation has 7 moat types across 4 domains; Watsco, Inc. has 4 across 3.

Primary market context

The Charles Schwab Corporation

Investor Services

Market

U.S. retail brokerage, self-directed investing, and wealth management platforms

Geography

United States

Customer

Retail investors, employers, retirement plan sponsors

Role

Broker-dealer + bank + wealth manager platform

Revenue share

79.4%

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

The Charles Schwab Corporation
Watsco, Inc.
Ticker / Exchange
SCHW - New York Stock Exchange
WSO - New York Stock Exchange
Market cap (USD)
$188.7B
$14.4B
Gross margin (TTM)
84.4%
28.3%
Operating margin (TTM)
39%
10.2%
Net margin (TTM)
30.3%
7.4%
Sector
Financials
Industrials
Industry
Financial - Capital Markets
Industrial - Distribution
HQ country
US
US
Primary segment
Investor Services
HVAC/R Distribution
Market structure
Oligopoly
Competitive
Market share
n/a
9%-12% (implied)
HHI estimate
n/a
n/a
Pricing power
Weak
Moderate
Moat score
74 / 100
72 / 100
Moat domains
Supply, Demand, Financial, Network
Supply, Legal, Demand
Last update
2025-12-26
2026-01-05

Moat coverage

Shared moat types

Scale Economies Unit CostData Workflow Lockin

The Charles Schwab Corporation strengths

Suite BundlingBrand TrustFloat PrepaymentEcosystem ComplementsService Field Network

Watsco, Inc. strengths

Physical Network DensityContractual Exclusivity

Segment mix

The Charles Schwab Corporation segments

Full profile >

Investor Services

Oligopoly

79.4%

Advisor Services

Oligopoly

20.6%

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.