VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Saturday, January 10, 2026

Stock Comparison

Arthur J. Gallagher & Co. vs Paychex, Inc.

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

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

Paychex, Inc.

PAYX · NASDAQ Global Select Market

Market cap (USD)$41B
Gross margin (TTM)73.4%
Operating margin (TTM)37.1%
Net margin (TTM)26.5%
SectorIndustrials
IndustryStaffing & Employment Services
CountryUS
Data as of2026-01-04
Moat score
66/ 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 Paychex, Inc.'s moat claims, evidence, and risks.

View PAYX analysis

Comparison highlights

  • Moat score gap: Arthur J. Gallagher & Co. leads (69 / 100 vs 66 / 100 for Paychex, Inc.).
  • Segment focus: Arthur J. Gallagher & Co. has 2 segments (86% in Brokerage); Paychex, Inc. has 3 segments (73% in Management Solutions).
  • Moat breadth: Arthur J. Gallagher & Co. has 4 moat types across 2 domains; Paychex, Inc. has 7 across 4.

Primary market context

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%

Paychex, Inc.

Management Solutions

Market

Payroll processing and integrated HCM solutions for SMB and mid-market employers

Geography

United States (primarily)

Customer

Employers (SMB and mid-market)

Role

HCM SaaS + outsourced payroll/HR service provider

Revenue share

73%

Side-by-side metrics

Arthur J. Gallagher & Co.
Paychex, Inc.
Ticker / Exchange
AJG - New York Stock Exchange
PAYX - NASDAQ Global Select Market
Market cap (USD)
$67.9B
$41B
Gross margin (TTM)
n/a
73.4%
Operating margin (TTM)
n/a
37.1%
Net margin (TTM)
n/a
26.5%
Sector
Financials
Industrials
Industry
Insurance - Brokers
Staffing & Employment Services
HQ country
US
US
Primary segment
Brokerage
Management Solutions
Market structure
Oligopoly
Oligopoly
Market share
n/a
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
69 / 100
66 / 100
Moat domains
Supply, Demand
Demand, Supply, Legal, Financial
Last update
2026-01-09
2026-01-04

Moat coverage

Shared moat types

Service Field NetworkData Workflow Lockin

Arthur J. Gallagher & Co. strengths

Brand TrustOperational Excellence

Paychex, Inc. strengths

Suite BundlingCompliance AdvantageUnderwriting Risk PoolingSwitching Costs GeneralFloat Prepayment

Segment mix

Arthur J. Gallagher & Co. segments

Full profile >

Brokerage

Oligopoly

86%

Risk Management

Competitive

14%

Paychex, Inc. segments

Full profile >

Management Solutions

Oligopoly

73%

PEO and Insurance Solutions

Competitive

24.1%

Client funds float (interest on funds held for clients)

Oligopoly

2.9%

Want the full wide moat stocks list?

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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.