VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 8, 2026

Stock Comparison

Texas Instruments Incorporated vs Watsco, Inc.

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

Texas Instruments Incorporated

TXN · Nasdaq Global Select Market

Market cap (USD)$161B
Gross margin (TTM)57.5%
Operating margin (TTM)34.3%
Net margin (TTM)29.2%
SectorTechnology
IndustrySemiconductors
CountryUS
Data as of2025-12-30
Moat score
66/ 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 Texas Instruments Incorporated's moat claims, evidence, and risks.

View TXN 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: Watsco, Inc. leads (72 / 100 vs 66 / 100 for Texas Instruments Incorporated).
  • Segment focus: Texas Instruments Incorporated has 3 segments (77.8% in Analog); Watsco, Inc. has 1 segment (100% in HVAC/R Distribution).
  • Moat breadth: Texas Instruments Incorporated has 7 moat types across 3 domains; Watsco, Inc. has 4 across 3.

Primary market context

Texas Instruments Incorporated

Analog

Market

Analog semiconductors (power management and signal chain ICs)

Geography

Global

Customer

Electronics OEMs/ODMs and distributors

Role

IDM semiconductor supplier

Revenue share

77.8%

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

Texas Instruments Incorporated
Watsco, Inc.
Ticker / Exchange
TXN - Nasdaq Global Select Market
WSO - New York Stock Exchange
Market cap (USD)
$161B
$14.4B
Gross margin (TTM)
57.5%
28.3%
Operating margin (TTM)
34.3%
10.2%
Net margin (TTM)
29.2%
7.4%
Sector
Technology
Industrials
Industry
Semiconductors
Industrial - Distribution
HQ country
US
US
Primary segment
Analog
HVAC/R Distribution
Market structure
Competitive
Competitive
Market share
12%-16% (implied)
9%-12% (implied)
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
66 / 100
72 / 100
Moat domains
Supply, Demand, Legal
Supply, Legal, Demand
Last update
2025-12-30
2026-01-05

Moat coverage

Shared moat types

Scale Economies Unit Cost

Texas Instruments Incorporated strengths

Supply Chain ControlDistribution ControlScope EconomiesTraining Org Change CostsIP Choke PointHabit Default

Watsco, Inc. strengths

Physical Network DensityContractual ExclusivityData Workflow Lockin

Segment mix

Texas Instruments Incorporated segments

Full profile >

Analog

Competitive

77.8%

Embedded Processing

Competitive

16.2%

Other

Competitive

6.1%

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.