UL Solutions Inc. ULS

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
72/100
Moderate

About UL Solutions Inc.

UL Solutions Inc., together with its subsidiaries, provides testing, inspection and certification services and related software and advisory services worldwide. It operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across various end markets, including energy, industrial automation, engineered materials, and built environment, as well as stakeholders, such as manufacturers, … Full ULS analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 92.1th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Revenue Growth Consistent Revenue growth volatility is low (stability score 0.89), suggesting sticky customer base.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
73

Where ULS ranks in Specialty Business Services

UL Solutions Inc. ranks #6 of 41 scored companies in Specialty Business Services by moat score — the top 15%. The widest moat in the group is Copart, Inc. (CPRT) at 81/100.

Moat scores for companies ranked near ULS in Specialty Business Services
# Company Moat score Rating
2 Cintas Corporation CTAS 81/100 Strong
3 Dolby Laboratories DLB 75/100 Strong
4 RELX PLC PLC RELX 75/100 Moderate
5 Thomson Reuters Corp TRI 73/100 Moderate
6 UL Solutions Inc. ULS 72/100 Moderate
7 AZZ Inc. AZZ 71/100 Moderate
8 Cass Information Systems, Inc CASS 68/100 Moderate
9 Maximus, Inc. MMS 67/100 Moderate
10 Unifirst Corporation UNF 65/100 Moderate

See every General Corporate company ranked by moat score →

How ULS scores on the Corporate Default defenses

Pricing Power

Score 73 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 61 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 79 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 76 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 67 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 78 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding ULS's moat

What is UL Solutions Inc.'s moat score?

UL Solutions Inc. (ULS) scores 72 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #6 of 41 scored companies in Specialty Business Services, the top 15%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 40 companies in Specialty Business Services. Its strongest defense is Customer Stickiness (79/100) and its weakest is Cost Advantage (61/100).

How does UL Solutions Inc. compare with other Specialty Business Services companies?

UL Solutions Inc. ranks #6 of 41 scored companies in Specialty Business Services by moat score. The widest moat in Specialty Business Services is Copart, Inc. (CPRT) at 81/100. The companies ranked closest are Thomson Reuters Corp (TRI) at 73 just above it and AZZ Inc. (AZZ) at 71 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 40 companies in Specialty Business Services. The defenses are then weighted to produce the overall score out of 100.

Why is UL Solutions Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for UL Solutions Inc.?

The Corporate Default template measures 6 defenses, and ULS scores: Pricing Power (73), Cost Advantage (61), Customer Stickiness (79), Capital Efficiency (76), Resilience (67), Scale & Market Position (78). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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