VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Saturday, January 3, 2026

Stock Comparison

Universal Music Group N.V. vs Xero Limited

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

Universal Music Group N.V.

UMG · Euronext Amsterdam

Market cap (USD)$40.3B
Gross margin (TTM)40.4%
Operating margin (TTM)10.4%
Net margin (TTM)17.5%
SectorCommunication Services
IndustryEntertainment
CountryNL
Data as of2025-12-28
Moat score
77/ 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 Universal Music Group N.V.'s moat claims, evidence, and risks.

View UMG 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: Universal Music Group N.V. leads (77 / 100 vs 71 / 100 for Xero Limited).
  • Segment focus: Universal Music Group N.V. has 3 segments (75.2% in Recorded Music); Xero Limited has 2 segments.
  • Moat breadth: Universal Music Group N.V. has 5 moat types across 3 domains; Xero Limited has 7 across 3.

Primary market context

Universal Music Group N.V.

Recorded Music

Market

Recorded music rights (labels) and monetization (streaming, physical, licensing/sync)

Geography

Global

Customer

Digital service providers (audio/video/social), physical retailers, and licensing counterparties

Role

Label / master rights holder; artist development, marketing and distribution

Revenue share

75.2%

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

Universal Music Group N.V.
Xero Limited
Ticker / Exchange
UMG - Euronext Amsterdam
XRO - Australian Securities Exchange
Market cap (USD)
$40.3B
n/a
Gross margin (TTM)
40.4%
n/a
Operating margin (TTM)
10.4%
n/a
Net margin (TTM)
17.5%
n/a
Sector
Communication Services
Technology
Industry
Entertainment
n/a
HQ country
NL
NZ
Primary segment
Recorded Music
Core Accounting Subscription Platform
Market structure
Oligopoly
Oligopoly
Market share
31%-33% (estimated)
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
77 / 100
71 / 100
Moat domains
Legal, Supply, Demand
Demand, Network, Financial
Last update
2025-12-28
2026-01-02

Moat coverage

Shared moat types

No overlap yet.

Universal Music Group N.V. strengths

Content Rights CurrencyScale Economies Unit CostBrand TrustLong Term ContractsService Field Network

Xero Limited strengths

Data Workflow LockinSwitching Costs GeneralTwo Sided NetworkBenchmark Pricing PowerInteroperability HubEcosystem ComplementsSuite Bundling

Segment mix

Universal Music Group N.V. segments

Full profile >

Recorded Music

Oligopoly

75.2%

Music Publishing

Oligopoly

17.9%

Merchandising and Other

Competitive

7.1%

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?

Browse the full ranking of wide moat stocks, updated with moat scores and segment context.

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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.