VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Saturday, January 10, 2026

Stock Comparison

Automatic Data Processing, Inc. vs Arthur J. Gallagher & Co.

Compare moat strength, market structure, and segment coverage to understand how each company defends its edge.

Automatic Data Processing, Inc.

ADP · NASDAQ

Market cap (USD)$107.6B
Gross margin (TTM)49.3%
Operating margin (TTM)19.2%
Net margin (TTM)19.8%
SectorTechnology
IndustryStaffing & Employment Services
CountryUS
Data as of2025-12-30
Moat score
71/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Automatic Data Processing, Inc.'s moat claims, evidence, and risks.

View ADP analysis

Arthur J. Gallagher & Co.

AJG · New York Stock Exchange

Market cap (USD)$67.9B
Gross margin (TTM)
Operating margin (TTM)
Net margin (TTM)
SectorFinancials
IndustryInsurance - Brokers
CountryUS
Data as of2026-01-09
Moat score
69/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Arthur J. Gallagher & Co.'s moat claims, evidence, and risks.

View AJG analysis

Comparison highlights

  • Moat score gap: Automatic Data Processing, Inc. leads (71 / 100 vs 69 / 100 for Arthur J. Gallagher & Co.).
  • Segment focus: Automatic Data Processing, Inc. has 2 segments (67.5% in Employer Services); Arthur J. Gallagher & Co. has 2 segments (86% in Brokerage).
  • Moat breadth: Automatic Data Processing, Inc. has 7 moat types across 4 domains; Arthur J. Gallagher & Co. has 4 across 2.

Primary market context

Automatic Data Processing, Inc.

Employer Services

Market

Payroll processing and cloud HCM (HR, time, talent, tax, benefits) software and outsourcing

Geography

Global

Customer

Businesses (SMB to large enterprise)

Role

SaaS and managed services provider

Revenue share

67.5%

Arthur J. Gallagher & Co.

Brokerage

Market

Insurance and reinsurance brokerage and consulting

Geography

Global

Customer

Commercial, industrial, public sector, nonprofit and other organizations; underwriting enterprises for reinsurance placements

Role

Intermediary / broker / advisor

Revenue share

86%

Side-by-side metrics

Automatic Data Processing, Inc.
Arthur J. Gallagher & Co.
Ticker / Exchange
ADP - NASDAQ
AJG - New York Stock Exchange
Market cap (USD)
$107.6B
$67.9B
Gross margin (TTM)
49.3%
n/a
Operating margin (TTM)
19.2%
n/a
Net margin (TTM)
19.8%
n/a
Sector
Technology
Financials
Industry
Staffing & Employment Services
Insurance - Brokers
HQ country
US
US
Primary segment
Employer Services
Brokerage
Market structure
Oligopoly
Oligopoly
Market share
16.7% (reported)
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
71 / 100
69 / 100
Moat domains
Demand, Legal, Supply, Financial
Supply, Demand
Last update
2025-12-30
2026-01-09

Moat coverage

Shared moat types

No overlap yet.

Automatic Data Processing, Inc. strengths

Switching Costs GeneralCompliance AdvantageScale Economies Unit CostFloat PrepaymentRegulated Standards PipeSuite BundlingUnderwriting Risk Pooling

Arthur J. Gallagher & Co. strengths

Service Field NetworkBrand TrustData Workflow LockinOperational Excellence

Segment mix

Automatic Data Processing, Inc. segments

Full profile >

Employer Services

Oligopoly

67.5%

Professional Employer Organization (PEO) Services

Competitive

32.5%

Arthur J. Gallagher & Co. segments

Full profile >

Brokerage

Oligopoly

86%

Risk Management

Competitive

14%

Want the full wide moat stocks list?

Browse the full ranking of wide moat stocks, updated with moat scores and segment context.

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Looking for expansion-stage stocks?

Proven models entering the expansion stage with unit economics that work.

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Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.