VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Saturday, January 3, 2026

Stock Comparison

The Charles Schwab Corporation vs Xero Limited

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)$183.6B
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

Xero Limited

XRO · Australian Securities Exchange

Market cap (USD)
Gross margin (TTM)
Operating margin (TTM)
Net margin (TTM)
SectorTechnology
Industry
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: The Charles Schwab Corporation leads (74 / 100 vs 71 / 100 for Xero Limited).
  • Segment focus: The Charles Schwab Corporation has 2 segments (79.4% in Investor Services); Xero Limited has 2 segments.
  • Primary market structure: Oligopoly vs Oligopoly. Pricing power: Weak vs Moderate.
  • Moat breadth: The Charles Schwab Corporation has 7 moat types across 4 domains; Xero Limited has 7 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%

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

The Charles Schwab Corporation
Xero Limited
Ticker / Exchange
SCHW - New York Stock Exchange
XRO - Australian Securities Exchange
Market cap (USD)
$183.6B
n/a
Gross margin (TTM)
84.4%
n/a
Operating margin (TTM)
39%
n/a
Net margin (TTM)
30.3%
n/a
Sector
Financials
Technology
Industry
Financial - Capital Markets
n/a
HQ country
US
NZ
Primary segment
Investor Services
Core Accounting Subscription Platform
Market structure
Oligopoly
Oligopoly
Market share
n/a
n/a
HHI estimate
n/a
n/a
Pricing power
Weak
Moderate
Moat score
74 / 100
71 / 100
Moat domains
Supply, Demand, Financial, Network
Demand, Network, Financial
Last update
2025-12-26
2026-01-02

Moat coverage

Shared moat types

Suite BundlingData Workflow LockinEcosystem Complements

The Charles Schwab Corporation strengths

Scale Economies Unit CostBrand TrustFloat PrepaymentService Field Network

Xero Limited strengths

Switching Costs GeneralTwo Sided NetworkBenchmark Pricing PowerInteroperability Hub

Segment mix

The Charles Schwab Corporation segments

Full profile >

Investor Services

Oligopoly

79.4%

Advisor Services

Oligopoly

20.6%

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?

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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.