Western Digital Corporation WDC

Competitive advantage analysis · technology

Corporate Default
Overall moat score
76/100
Strong

About Western Digital Corporation

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions based on hard disk drive (HDD) technology in the United States, Asia, Europe, the Middle East, and Africa. The company offers internal HDDs, data center drives, data center platforms, external drives, portable drives, NAS for home and office, and accessories. It sells its data storage devices and solutions … Full WDC analysis →

Competitive advantage assessment

Key strengths

  • Cost Leadership Position Operating margin at 97.0th percentile with strong OpEx control demonstrates cost leadership.
  • Margins Consistently Above Peers Gross margin at 48.8% (top 24%) and operating margin at 34.5% (top 3%) indicate strong pricing power.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.15), raising questions about short-term obligations.
  • Revenue Volatility Signals Weak Stickiness Revenue volatility is high (stability score 0.33), suggesting weak customer stickiness.

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
70

Where WDC ranks in Computer Hardware

Western Digital Corporation ranks #5 of 36 scored companies in Computer Hardware by moat score — the top 14%. The widest moat in the group is Arista Networks, Inc. (ANET) at 86/100.

Moat scores for companies ranked near WDC in Computer Hardware
# Company Moat score Rating
1 Arista Networks, Inc. ANET 86/100 Strong
2 Logitech International S.A. - R LOGI 81/100 Strong
3 NetApp, Inc. NTAP 80/100 Strong
4 Cricut, Inc. CRCT 77/100 Strong
5 Western Digital Corporation WDC 76/100 Strong
6 Seagate Technology Holdings PLC STX 73/100 Moderate
7 Pure Storage, Inc. PSTG 69/100 Moderate
8 Planet Image International Limi YIBO 67/100 Moderate
9 HP Inc. HPQ 67/100 Moderate

See every General Corporate company ranked by moat score →

How WDC scores on the Corporate Default defenses

Pricing Power

Score 70 · 20% of the moat score

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

Cost Advantage

Score 97 · 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 72 · 15% of the moat score

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

Capital Efficiency

Score 78 · 18% of the moat score

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

Resilience

Score 56 · 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 86 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding WDC's moat

What is Western Digital Corporation's moat score?

Western Digital Corporation (WDC) scores 76 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #5 of 36 scored companies in Computer Hardware, the top 14%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 35 companies in Computer Hardware. Its strongest defense is Cost Advantage (97/100) and its weakest is Resilience (56/100).

How does Western Digital Corporation compare with other Computer Hardware companies?

Western Digital Corporation ranks #5 of 36 scored companies in Computer Hardware by moat score. The widest moat in Computer Hardware is Arista Networks, Inc. (ANET) at 86/100. The companies ranked closest are Cricut, Inc. (CRCT) at 77 just above it and Seagate Technology Holdings PLC (STX) at 73 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 35 companies in Computer Hardware. The defenses are then weighted to produce the overall score out of 100.

Why is Western Digital Corporation 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 Western Digital Corporation?

The Corporate Default template measures 6 defenses, and WDC scores: Pricing Power (70), Cost Advantage (97), Customer Stickiness (72), Capital Efficiency (78), Resilience (56), Scale & Market Position (86). 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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