VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 8, 2026

Stock Comparison

The Sherwin-Williams Company vs Watsco, Inc.

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

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

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 Sherwin-Williams Company leads (84 / 100 vs 72 / 100 for Watsco, Inc.).
  • Segment focus: The Sherwin-Williams Company has 3 segments (57.1% in Paint Stores Group); Watsco, Inc. has 1 segment (100% in HVAC/R Distribution).
  • Primary market structure: Quasi-Monopoly vs Competitive. Pricing power: Strong vs Moderate.
  • Moat breadth: The Sherwin-Williams Company has 6 moat types across 3 domains; Watsco, Inc. has 4 across 3.

Primary market context

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%

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 Sherwin-Williams Company
Watsco, Inc.
Ticker / Exchange
SHW - New York Stock Exchange
WSO - New York Stock Exchange
Market cap (USD)
$82.5B
$14.4B
Gross margin (TTM)
48.9%
28.3%
Operating margin (TTM)
15.9%
10.2%
Net margin (TTM)
11.1%
7.4%
Sector
Materials
Industrials
Industry
Chemicals - Specialty
Industrial - Distribution
HQ country
US
US
Primary segment
Paint Stores Group
HVAC/R Distribution
Market structure
Quasi-Monopoly
Competitive
Market share
69.4% (estimated)
9%-12% (implied)
HHI estimate
n/a
n/a
Pricing power
Strong
Moderate
Moat score
84 / 100
72 / 100
Moat domains
Supply, Demand, Legal
Supply, Legal, Demand
Last update
2025-12-31
2026-01-05

Moat coverage

Shared moat types

No overlap yet.

The Sherwin-Williams Company strengths

Distribution ControlService Field NetworkBrand TrustScope EconomiesSwitching Costs GeneralCompliance Advantage

Watsco, Inc. strengths

Physical Network DensityContractual ExclusivityScale Economies Unit CostData Workflow Lockin

Segment mix

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%

Watsco, Inc. segments

Full profile >

HVAC/R Distribution

Competitive

100%

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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.