VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 8, 2026

Stock Comparison

TransDigm Group Incorporated vs Watsco, Inc.

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

TransDigm Group Incorporated

TDG · New York Stock Exchange

Market cap (USD)$77B
Gross margin (TTM)60.2%
Operating margin (TTM)47.2%
Net margin (TTM)23.5%
SectorIndustrials
IndustryAerospace & Defense
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 TransDigm Group Incorporated's moat claims, evidence, and risks.

View TDG 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: TransDigm Group Incorporated leads (84 / 100 vs 72 / 100 for Watsco, Inc.).
  • Segment focus: TransDigm Group Incorporated has 3 segments (51.6% in Power & Control); Watsco, Inc. has 1 segment (100% in HVAC/R Distribution).
  • Primary market structure: Competitive vs Competitive. Pricing power: Strong vs Moderate.
  • Moat breadth: TransDigm Group Incorporated has 5 moat types across 3 domains; Watsco, Inc. has 4 across 3.

Primary market context

TransDigm Group Incorporated

Power & Control

Market

Highly engineered aerospace power & control components (OEM and aftermarket)

Geography

Global

Customer

Commercial airlines, aircraft OEMs, defense OEMs, governments, aerospace distributors

Role

Tier 2/3 component OEM, aftermarket spares, repair/overhaul

Revenue share

51.6%

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

TransDigm Group Incorporated
Watsco, Inc.
Ticker / Exchange
TDG - New York Stock Exchange
WSO - New York Stock Exchange
Market cap (USD)
$77B
$14.4B
Gross margin (TTM)
60.2%
28.3%
Operating margin (TTM)
47.2%
10.2%
Net margin (TTM)
23.5%
7.4%
Sector
Industrials
Industrials
Industry
Aerospace & Defense
Industrial - Distribution
HQ country
US
US
Primary segment
Power & Control
HVAC/R Distribution
Market structure
Competitive
Competitive
Market share
n/a
9%-12% (implied)
HHI estimate
n/a
n/a
Pricing power
Strong
Moderate
Moat score
84 / 100
72 / 100
Moat domains
Demand, Legal, Supply
Supply, Legal, Demand
Last update
2025-12-31
2026-01-05

Moat coverage

Shared moat types

No overlap yet.

TransDigm Group Incorporated strengths

Design In QualificationInstalled Base ConsumablesRegulated Standards PipeOperational ExcellenceSmall legacy non-aviation portfolio

Watsco, Inc. strengths

Physical Network DensityContractual ExclusivityScale Economies Unit CostData Workflow Lockin

Segment mix

TransDigm Group Incorporated segments

Full profile >

Power & Control

Competitive

51.6%

Airframe

Competitive

46.6%

Non-aviation

Competitive

1.8%

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.