TSCO (Tractor Supply Co) vs S&P 500 Comparison

TSCO

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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TSCO

S&P 500

Difference

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TSCO

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

TSCO

ULTA

DKS

601888

9992

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Tractor Supply Co
Glance View

Economic Moat

None

Market Cap

29.6B USD

Industry

Retail

Tractor Supply Co. emerged from humble beginnings with a mission centered on the needs of rural America. Founded in 1938 as a mail-order business, it quickly burgeoned into a retail powerhouse for farmers, ranchers, and rural residents. With over 2,000 stores across the United States, the company has come to symbolize the sustenance of rural lifestyles, offering an extensive range of products from agricultural supplies to home improvement items. The company's ethos centers around understanding the daily needs and challenges faced by its customer base, allowing it to cater to a lifestyle that values self-sufficiency, agriculture, and community support. At the heart of Tractor Supply’s business model is a keen focus on rural communities, providing an assortment of products that range from livestock feed to power tools and gardening supplies. It operates by selling these essential items through a widespread network of physical stores and a robust e-commerce platform. The company's profitability hinges on maintaining tight inventory controls and capitalizing on cost-effective supply chain strategies, allowing it to offer competitive pricing. Customer loyalty is cemented through its rewards program, which nurtures long-standing relationships and repeat business. Thus, Tractor Supply Co. earns its revenue not only from its extensive product selection but also from its ability to align its offerings with the evolving needs of its dedicated customer base.

View TSCO Analysis

TSCO Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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CN		China Tourism Group Duty Free Corp Ltd SSE:601888	Select
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HK		Chow Tai Fook Jewellery Group Ltd HKEX:1929	Select
NL	G	Grandvision NV F:8GV	Select
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US		Ulta Beauty Inc NASDAQ:ULTA	Add
US		DICK'S Sporting Goods Inc NYSE:DKS	Add
CN		China Tourism Group Duty Free Corp Ltd SSE:601888	Add
CN		Pop Mart International Group Ltd HKEX:9992	Add
HK		Chow Tai Fook Jewellery Group Ltd HKEX:1929	Add
NL	G	Grandvision NV F:8GV	Add
JP		Sanrio Co Ltd TSE:8136	Add
US		Bath & Body Works Inc NYSE:BBWI	Add
UK		JD Sports Fashion PLC LSE:JD	Add
US		Five Below Inc NASDAQ:FIVE	Add

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TSCO

vs

S&P 500

Stocks Performance
TSCO vs S&P 500

Performance Gap
TSCO vs S&P 500

Performance By Year
TSCO vs S&P 500

Competitors Performance
Tractor Supply Co vs Peers

Tractor Supply Co
Glance View

Company

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TSCO vs S&P 500

Stocks Performance TSCO vs S&P 500

Performance Gap TSCO vs S&P 500

Performance By Year TSCO vs S&P 500

Competitors Performance Tractor Supply Co vs Peers

Tractor Supply Co Glance View

Company

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Stocks

TSCO

vs

S&P 500

Stocks Performance
TSCO vs S&P 500

Performance Gap
TSCO vs S&P 500

Performance By Year
TSCO vs S&P 500

Competitors Performance
Tractor Supply Co vs Peers

Tractor Supply Co
Glance View