A wide moat means a company can defend its profits against competitors for years. These stocks earn 3.5+ stars on our ROIC-based moat rating — the strongest competitive advantages in our 98-stock coverage.
Every stock below has a moat rating of 3.5 stars or higher, indicating a durable competitive advantage backed by stable ROIC, healthy margins, and significant switching costs. The Margin of Safety column shows whether you would also get a good price — because a wide moat at any price is not necessarily a great investment.
In the long run, a company's profitability is determined by its competitive position — not its growth rate. A fast-growing company without a moat will see competitors pile in, margins compress, and returns on capital decline to the cost of capital. A slow-growing company with a wide moat can sustain above-average returns for decades.
The math is simple: a company that maintains 20% ROIC compounds its intrinsic value at roughly 20% per year minus whatever it pays out. A company earning 8% ROIC (roughly cost of capital) creates no incremental value regardless of how fast it grows revenue. Growth without a moat is a treadmill.
Looking at the wide-moat stocks above, several moat types appear repeatedly. Understanding why a moat exists helps you assess whether it is likely to endure. For a deep dive, read Types of Economic Moats.
The wide-moat list above includes stocks at various valuations — some trade below fair value (positive margin of safety), others trade at a premium. For the highest-conviction picks that combine wide moat + undervaluation + financial safety, see the Strike Zone.
If you are interested in companies where the moat may be widening — or eroding — check the Narrow Moat Stocks page, which tracks competitive positions in transition.
A moat rating of 3.5 stars or higher in our system, based on 10 years of ROIC consistency, gross margin trends, and implied switching costs. This corresponds to companies that can sustainably earn well above their cost of capital.
Not necessarily. A wide moat protects the business, but the stock price matters too. Check the margin of safety — a wide-moat stock at a massive premium may underperform a narrow-moat stock at a deep discount over the short to medium term.
Our rating is quantitative (ROIC data + margin trends), while Morningstar uses qualitative analyst assessment. We tend to agree on the clear wide moats (V, MA, KO) but may differ on companies where the qualitative story is stronger than the quantitative data, or vice versa.
Yes. Technology disruption, regulatory changes, and competitive innovation can erode even the widest moats. We track ROIC trends to detect erosion early — a wide-moat stock with declining ROIC for 3+ years may be heading toward narrow-moat territory.
Companies with competitive advantages under pressure — moats that may be widening or narrowing.
How we rate moats, the three-factor methodology, and comparison with Morningstar.
Wide moat + undervalued + safe Z-Score = the ultimate value investing filter.