VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Thursday, January 8, 2026

Stock Comparison

Union Pacific Corporation vs Watsco, Inc.

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

Union Pacific Corporation

UNP · New York Stock Exchange

Market cap (USD)$137.6B
Gross margin (TTM)45.9%
Operating margin (TTM)40.6%
Net margin (TTM)28.7%
SectorIndustrials
IndustryRailroads
CountryUS
Data as of2025-12-30
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 Union Pacific Corporation's moat claims, evidence, and risks.

View UNP 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: both at 72 / 100.
  • Segment focus: Union Pacific Corporation has 4 segments (34.8% in Industrial); Watsco, Inc. has 1 segment (100% in HVAC/R Distribution).
  • Primary market structure: Oligopoly vs Competitive. Pricing power: Moderate vs Moderate.
  • Moat breadth: Union Pacific Corporation has 5 moat types across 2 domains; Watsco, Inc. has 4 across 3.

Primary market context

Union Pacific Corporation

Industrial

Market

Rail freight transportation for industrial commodities (chemicals and plastics, metals and minerals, forest products, energy and specialized markets)

Geography

U.S. western two-thirds with interchange to other railroads; cross-border corridors to Mexico and Canada

Customer

Chemical producers, refiners, plastics manufacturers, construction and material suppliers, metals and mining, industrial shippers

Role

Class I rail carrier / linehaul freight transport

Revenue share

34.8%

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

Union Pacific Corporation
Watsco, Inc.
Ticker / Exchange
UNP - New York Stock Exchange
WSO - New York Stock Exchange
Market cap (USD)
$137.6B
$14.4B
Gross margin (TTM)
45.9%
28.3%
Operating margin (TTM)
40.6%
10.2%
Net margin (TTM)
28.7%
7.4%
Sector
Industrials
Industrials
Industry
Railroads
Industrial - Distribution
HQ country
US
US
Primary segment
Industrial
HVAC/R Distribution
Market structure
Oligopoly
Competitive
Market share
n/a
9%-12% (implied)
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
72 / 100
72 / 100
Moat domains
Legal, Supply
Supply, Legal, Demand
Last update
2025-12-30
2026-01-05

Moat coverage

Shared moat types

Physical Network DensityScale Economies Unit Cost

Union Pacific Corporation strengths

Permits Rights Of WayOperational ExcellenceScope Economies

Watsco, Inc. strengths

Contractual ExclusivityData Workflow Lockin

Segment mix

Union Pacific Corporation segments

Full profile >

Bulk

Oligopoly

29.7%

Industrial

Oligopoly

34.8%

Premium

Oligopoly

29.5%

Other subsidiary, accessorial and other revenues

Competitive

5.9%

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.