VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Wednesday, January 7, 2026

Stock Comparison

Synopsys, Inc. vs Watsco, Inc.

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

Synopsys, Inc.

SNPS · NASDAQ

Market cap (USD)$94.5B
Gross margin (TTM)73.1%
Operating margin (TTM)13%
Net margin (TTM)18.9%
SectorTechnology
IndustrySoftware - Infrastructure
CountryUS
Data as of2025-12-29
Moat score
85/ 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 Synopsys, Inc.'s moat claims, evidence, and risks.

View SNPS 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: Synopsys, Inc. leads (85 / 100 vs 72 / 100 for Watsco, Inc.).
  • Segment focus: Synopsys, Inc. has 2 segments (75.2% in Design Automation); Watsco, Inc. has 1 segment (100% in HVAC/R Distribution).
  • Primary market structure: Oligopoly vs Competitive. Pricing power: Moderate vs Moderate.
  • Moat breadth: Synopsys, Inc. has 5 moat types across 2 domains; Watsco, Inc. has 4 across 3.

Primary market context

Synopsys, Inc.

Design Automation

Market

Electronic design automation (EDA) software and silicon-to-systems simulation & analysis tools

Geography

Global

Customer

Semiconductor and systems companies (chip/system designers)

Role

Software + hardware tooling provider / platform

Revenue share

75.2%

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

Synopsys, Inc.
Watsco, Inc.
Ticker / Exchange
SNPS - NASDAQ
WSO - New York Stock Exchange
Market cap (USD)
$94.5B
$14.4B
Gross margin (TTM)
73.1%
28.3%
Operating margin (TTM)
13%
10.2%
Net margin (TTM)
18.9%
7.4%
Sector
Technology
Industrials
Industry
Software - Infrastructure
Industrial - Distribution
HQ country
US
US
Primary segment
Design Automation
HVAC/R Distribution
Market structure
Oligopoly
Competitive
Market share
30%-32% (reported)
9%-12% (implied)
HHI estimate
2,140
n/a
Pricing power
Moderate
Moderate
Moat score
85 / 100
72 / 100
Moat domains
Demand, Supply
Supply, Legal, Demand
Last update
2025-12-29
2026-01-05

Moat coverage

Shared moat types

No overlap yet.

Synopsys, Inc. strengths

Switching Costs GeneralSuite BundlingCapex Knowhow ScaleDesign In QualificationInstalled Base Consumables

Watsco, Inc. strengths

Physical Network DensityContractual ExclusivityScale Economies Unit CostData Workflow Lockin

Segment mix

Synopsys, Inc. segments

Full profile >

Design Automation

Oligopoly

75.2%

Design IP

Oligopoly

24.8%

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.