4 Stocks with Monumental Business Moats

Following the advice of legendary investor Warren Buffett, we have identified stocks with durable competitive advantages

SmallCapPower | May 30, 2016: A key driver to a company’s future profitability is return on invested capital (ROIC). This figure is enhanced greatly for companies who have business moats, which are essentially durable competitive advantages in a specific sector. Business moats come in many forms, such as the extremely capital intensive nature of the railroad industry. That being said, we have shortlisted four publicly-traded U.S. companies with well- regarded brand names that provide shelter from competitive threats.

Amazon.com Inc. (NASDAQ:AMZN) – $712.24
Department Stores

Amazon.com, Inc. offers a range of products and services through its websites. The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. Amazon has three segments: North America, International and Amazon Web Services (AWS). The Company’s AWS segment focuses on the sales of compute, storage, database and other AWS service offerings for start-ups, enterprises, government agencies and academic institutions.

• Market Cap: $336.0 Billion
• Total Revenue (LTM, USD): 113,418,000,000
• Operating Income (LTM, USD): 3,050,000,000
• Total Debt (USD): 8,219,000,000

Pfizer Inc. (NYSE:PFE) – $34.61
Pharmaceuticals

Pfizer Inc. is a research-based global biopharmaceutical company that is engaged in discovering, developing and manufacturing healthcare products. Its portfolio includes medicines, vaccines and medical devices, as well as consumer healthcare products. Its products include Prevnar/Prevenar 13, Lyrica, Enbrel, Lipitor, Viagra, Sutent, BeneFIX, Genotropin, ReFacto, Xyntha and Enbrel. Its commercial operations consist of two businesses: Innovative Products business and Established Products business. Pfizer’s research focuses on six areas, which include immunology and inflammation, cardiovascular and metabolic diseases, oncology, vaccines, neuroscience and pain, and rare diseases.

• Market Cap: $209.6 Billion
• Total Revenue (LTM, USD): 50,992,000,000
• Operating Income (LTM, USD): 10,360,000,000
• Total Debt (USD): 39,370,000,000

Walt Disney Co (NYSE:DIS) – $100.29
Broadcasting

The Walt Disney Company, incorporated on July 28, 1995, together with its subsidiaries and affiliates, is a diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media. Media Networks comprise an array of broadcast, cable, radio, publishing and digital businesses across two divisions the Disney/ABC Television Group and ESPN Inc.

• Market Cap: $162.7 Billion
• Total Revenue (LTM, USD): 54,826,000,000
• Operating Income (LTM, USD): 14,128,000,000
• Total Debt (USD): 21,122,000,000

Union Pacific Corp. (NYSE:UNP) – $82.97
Ground Freight & Logistics

Union Pacific Corporation operates through its principal operating company, Union Pacific Railroad Company. Union Pacific Railroad Company links approximately 20 states in the western two-thirds of the country by rail, providing link in the supply chain. The Company’s business mix includes agricultural products, automotive, chemicals, coal, industrial products and intermodal.

• Market Cap: $69.8 Billion
• Total Revenue (LTM, USD): 21,028,000,000
• Operating Income (LTM, USD): 7,762,000,000
• Total Debt (USD): 15,193,000,000

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