@fallcolors, no one really thinks the other kid is academically stronger based on his ACT. We are just pointing out that for the OP (and you) to assume that he is clearly academically inferior is false.
With regard to colleges using GPA, you’re right, they do, but not all schools use the same grading schemes (coughbrowncough) and again many graduate and professional schools (and employers) don’t use GPA or standardized test scores alone to determine who they want. Why should college be any different?