It's not all about the axel; it's about the entire spectrum of skating abilities, including spins, footwork, and other jumps. The axel can become a sticking point as it is such a milestone for many skaters. However, there are skaters who land nice doubles who still barely rotate an axel ...
The other kid may be on a different "stage" in terms of the rest of her skating; may be a different age; may be working on different things. It's all about the coaches best judgement.
BTW: my DD placed well ahead of other skaters WITH an axel and double jumps skating at Senior Bronze (which is all doubles up to and including 2lz) based on strong skating skills, high value spins, and quality of presentation and huge, clean single jumps and singles in combinations - and with only one very shaky double, and no axel - and that was at our StarSkate regional qualifiers.