VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Saturday, January 10, 2026

Stock Comparison

Vertex Pharmaceuticals Incorporated vs Xero Limited

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

Vertex Pharmaceuticals Incorporated

VRTX · NASDAQ

Market cap (USD)$119B
Gross margin (TTM)
Operating margin (TTM)
Net margin (TTM)
SectorHealthcare
IndustryBiotechnology
CountryUS
Data as of2026-01-08
Moat score
99/ 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 Vertex Pharmaceuticals Incorporated's moat claims, evidence, and risks.

View VRTX analysis

Xero Limited

XRO · Australian Securities Exchange

Market cap (USD)$18.3B
Gross margin (TTM)85.3%
Operating margin (TTM)17.6%
Net margin (TTM)11.5%
SectorTechnology
IndustrySoftware - Application
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: Vertex Pharmaceuticals Incorporated leads (99 / 100 vs 71 / 100 for Xero Limited).
  • Segment focus: Vertex Pharmaceuticals Incorporated has 3 segments (99.9% in Cystic Fibrosis CFTR Modulators); Xero Limited has 2 segments.
  • Primary market structure: Quasi-Monopoly vs Oligopoly. Pricing power: Strong vs Moderate.
  • Moat breadth: Vertex Pharmaceuticals Incorporated has 7 moat types across 4 domains; Xero Limited has 7 across 3.

Primary market context

Vertex Pharmaceuticals Incorporated

Cystic Fibrosis CFTR Modulators

Market

CFTR modulator therapies for cystic fibrosis

Geography

U.S., Europe, Australia, Canada

Customer

Patients (via specialty pharmacies/payers); CF care centers

Role

Drug developer/manufacturer

Revenue share

99.9%

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

Vertex Pharmaceuticals Incorporated
Xero Limited
Ticker / Exchange
VRTX - NASDAQ
XRO - Australian Securities Exchange
Market cap (USD)
$119B
$18.3B
Gross margin (TTM)
n/a
85.3%
Operating margin (TTM)
n/a
17.6%
Net margin (TTM)
n/a
11.5%
Sector
Healthcare
Technology
Industry
Biotechnology
Software - Application
HQ country
US
NZ
Primary segment
Cystic Fibrosis CFTR Modulators
Core Accounting Subscription Platform
Market structure
Quasi-Monopoly
Oligopoly
Market share
70%-78% (reported)
n/a
HHI estimate
n/a
n/a
Pricing power
Strong
Moderate
Moat score
99 / 100
71 / 100
Moat domains
Legal, Demand, Financial, Supply
Demand, Network, Financial
Last update
2026-01-08
2026-01-02

Moat coverage

Shared moat types

Switching Costs GeneralBenchmark Pricing Power

Vertex Pharmaceuticals Incorporated strengths

IP Choke PointGovernment Contracting RelationshipsRegulated Standards PipeService Field NetworkCapacity Moat

Xero Limited strengths

Data Workflow LockinTwo Sided NetworkInteroperability HubEcosystem ComplementsSuite Bundling

Segment mix

Vertex Pharmaceuticals Incorporated segments

Full profile >

Cystic Fibrosis CFTR Modulators

Quasi-Monopoly

99.9%

Hemoglobinopathies Gene Therapy (CASGEVY)

Oligopoly

0.1%

Acute Pain (JOURNAVX)

Competitive

n/a

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.

View the moat stocks list

Looking for expansion-stage stocks?

Proven models entering the expansion stage with unit economics that work.

View expansion-stage stocks

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.