Compare moats
Up to three covered companies, band by band. Every call is a curated editorial judgment, never a disclosed figure — and every band carries its cited basis.
| AppLovin | Tokyo Electron | |
|---|---|---|
| Moat rating | narrow The filing's own words support a narrow moat. Auctions run 'at vast scale and at microsecond-level speeds,' revenue is earned only 'when our advertisers achieve their return on advertising spend targets,' and FY2025 adjusted EBITDA margin was 82.3%. What limits the width: clients 'are not required to enter into long-term agreements' and 'Substantially all of the Company's contracts with customers are cancelable at any time'; the solutions 'primarily operate in the mobile app ecosystem and specifically mobile gaming'; and distribution runs through 'the Apple App Store, the Google Play Store, and Meta' while AppLovin relies 'in part on IDFA.' | narrow Integrated Report 2026 (issued 2026-09-15) documents strong positions across the line: by Tokyo Electron's own estimate it ranks No. 1 in diffusion furnaces, batch deposition, metal deposition, coater/developers, gas chemical etch and wafer probers, No. 2 in plasma etch and bonders and No. 3 in cleaning, and holds a "100% share" of coater/developers for EUV lithography; its installed base, industry-leading by its own estimate, is approximately 100,000 units, growing by approximately 4,000-6,000 units a year; and its 26,592 patents rank No. 1 in the semiconductor production equipment industry on the LexisNexis PatentSight+ database. Reported returns stayed high through a sales decline: gross profit margin stayed between 44.6% and 47.1% and ROE between 21.8% and 37.2% across fiscal 2022-2026, including fiscal 2024 when net sales fell to ¥1,830.5 billion. The share ranks, the EUV share and the installed-base lead are company estimates, not third-party data. |
| Moat type | network effects Network effects, with a caveat. The 10-K states the loop: as more advertisers use the solutions 'we gain access to more data regarding users and user engagement,' 'further strengthening our scaled distribution,' and 'As our distribution grows, we gain better insights for Axon AI.' The mechanism is two-sided matching of advertiser demand to publisher supply, though much of the force comes from data-and-learning scale. It is not switching costs, since contracts are 'cancelable at any time,' nor intangibles or IP, since 'there can be no assurance that we will adequately protect our intellectual property or that it will provide any competitive advantage.' | intangibles ip The report calls its patent portfolio its "fifth strength" and says that "by supporting our other four strengths, it serves a vital role as the foundation" for medium- to long-term corporate value: 26,592 patents as of March 31, 2026, 1,415 inventions created in Japan and 345 overseas in 2025, and Clarivate Top 100 Global Innovators recognition for the fifth consecutive year. The other strengths rest on the same proprietary process know-how — co-created technology roadmaps that evaluate technologies "for the next four generations and beyond" with customers, "numerous development PORs" (process of record) in the frontend business, and the EUV coater/developer position — so proprietary process technology, reinforced by qualification in customers' process flows, is the moat source. |
| Leadership | at parity The filing discloses no share of any market, names 'Meta, Google, Amazon, and Unity Software' as competitors, and concedes rivals 'may have greater resources' and 'better technological or data analytics capabilities, or stronger brands or competitive positions in certain product segments.' Its one positional statement is parity language: 'We believe we compete favorably with respect to these factors.' Two unquantified points cut upward: Meta and Google are also clients, and MAX is called 'the preferred in-app bidding solution for many publishers worldwide.' | co leader The CEO's message describes Tokyo Electron as "one of the world's leading suppliers of semiconductor production equipment" and states a "goal of becoming number one globally" — it does not claim to be the largest supplier overall — while by its own estimate it ranks No. 1 in six charted segments (diffusion furnace, batch deposition, metal deposition, coater/developer, gas chemical etch, wafer prober), No. 2 in plasma etch and bonders, and No. 3 in cleaning. |
| Pricing power | strong Strong, with the mechanism shown. The 10-K states that 'Advertisers are charged dynamically based on their campaign goals , rather than a simple fixed price per impression or per action.' Growth composition is the evidence: FY2025 revenue +70% with 'the volume of installations increased 3% and net revenue per installation increased 72%'; H1 2026 +56% with per-installation revenue +75% against 'a decrease in the volume of installations of 10%.' Adjusted EBITDA margin was 82.3% in FY2025 and 84.2% in H1 2026, though payment is performance-contingent and contracts cancel at will. | moderate Gross profit margin held in a 44.6%-47.1% range over fiscal 2022-2026, including fiscal 2024's sales decline, but in fiscal 2026 it fell 1.8 points to 45.3% "due to factors such as higher raw material prices and increased labor costs" even as net sales reached a record, and the CEO lists "revising prices appropriately with respect to cost increases caused by inflation" among five initiatives needed to improve the operating margin. |
| Summary | One reportable segment: an AI-priced auction matching advertiser demand to publisher supply, where 'Revenue from Axon Ads Manager comprises substantially all of our revenue.' The filed flywheel is real - more advertiser spend yields more user-engagement data, 'further strengthening our scaled distribution,' which feeds Axon AI - and it converts: FY2025 revenue $5.48B, up 70%, at an 82.3% adjusted EBITDA margin, carried by price (net revenue per installation +72%) not volume (installations +3%). What the filing does not evidence is a lock. Contracts are cancelable at any time, revenue concentrates in mobile gaming, and the distribution and identifier layers belong to Apple, Google and Meta - two of whom are simultaneously named competitors and disclosed clients. Wide margins with no disclosed structural lock is narrow. | Tokyo Electron makes wafer fab equipment for what its Integrated Report 2026 calls the "four key processes necessary for semiconductor scaling: deposition, coater/developer, etch, and cleaning", plus wafer probers and bonders for test and advanced packaging. The report grounds its edge in breadth and incumbency: leading share estimates in most of its segments, an estimated 100% share of EUV coater/developers, an installed base of approximately 100,000 units, industry-leading by its own estimate, feeding a Field Solutions business that sold ¥626.0 billion of parts, services, used equipment and modifications in fiscal 2026, and the industry's largest patent portfolio. Fiscal 2026 net sales were a record ¥2,443,533 million, but gross profit margin fell 1.8 points to 45.3% on higher raw material prices and labor costs, and operating margin fell 3.1 points to 25.6% as R&D expenses rose 11.1% to ¥277,866 million. China accounted for 34.1% of fiscal 2026 net sales, down from 41.7% the year before. |
| Chain position | Demand-side AI ad platform: it monetizes third-party mobile-game publishers' inventory and sells outcomes to advertisers, so it sits downstream of Apple/Google app distribution and Apple's IDFA identifier layer and upstream of publisher monetization. Meta and Google are simultaneously named competitors and disclosed clients. Single reportable segment after the June 2025 Apps divestiture. | Upstream equipment supplier to chipmakers: fiscal 2026 new-equipment sales of ¥1,775.4 billion went 59% to non-memory (logic, foundry, others), 31% to DRAM and 10% to NAND; by region, China took 34.1%, South Korea 22.3% and Taiwan 20.4% of net sales. |
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| Long-horizon vote | +0.11 at weight 0.20 · swarm neutral Editorial prior, not backtested. | +0.13 at weight 0.20 · swarm bearish Editorial prior, not backtested. |