American Express vs. SoFi Technologies: Which Financial Stock Is a Better Buy in 2026?

Investors often struggle to choose between established market leaders and aggressive digital disruptors. In 2026, comparing American Express (NYSE:AXP) and SoFi Technologies (NASDAQ:SOFI) highlights the contrast between high-end legacy stability and rapid fintech growth.

American Express relies on a premium membership model and a closed-loop payment network, while SoFi Technologies operates as a mobile-first digital bank with its own technology platform. These two companies are being compared because they represent different eras of financial services, each vying for the loyal business of high-earning consumers in an increasingly digital world.

The case for American Express

American Express operates a global payments network that generates revenue through card fees, merchant transaction fees, and interest on loans. The firm continues to navigate the competitive landscape of bank stocks while maintaining its unique closed-loop network. It services a premium customer base and maintains deep partnerships with major brands like Delta Air Lines, Marriott, and Hilton. In 2026, the company expanded its commercial reach by launching a business card with the American Bar Association. The Delta partnership remains a substantial revenue driver; concentration like this adds a layer of risk to the business.

In FY 2025, revenue reached $72.2 billion, representing a 10%% increase over the previous year. This growth was supported by strong proprietary card-in-force figures and resilient consumer spending. The company reported net income of approximately $10.8 billion for the period. This resulted in a net margin of roughly 15%, reflecting the company's ability to turn revenue into actual profit after all expenses.

The case for SoFi Technologies

SoFi Technologies is a member-centric digital platform providing lending, banking, and investment products. The company focuses on a membership model to cross-sell various financial products through a single app. In addition to consumer banking, it operates a technology platform that serves other fintech firms globally. Recent strategic moves include the acquisition of Composer, an automated trading platform, to enhance its artificial intelligence capabilities. This membership-based ecosystem reached roughly 14.7 million members by mid-2026.

For FY 2025, revenue reached $3.6 billion, which was a 38% increase compared to the prior year. This rapid growth indicates the company's success in attracting new members and expanding its deposit base. The company achieved net income of approximately $481.3 million during the fiscal year. This translated to a net margin of roughly 13.4%, a significant milestone for a company that had previously reported annual losses.

Risk profile comparison

American Express faces risks related to global economic conditions and inflation, which can reduce discretionary spending among its cardholders. Because the Delta cobrand portfolio is such a large part of its revenue, any loss of this partnership would be significant. The company also faces intense competition from massive networks like Visa and Mastercard. Furthermore, regulatory scrutiny regarding merchant contract provisions and interchange fees could force changes to its established business model.

SoFi Technologies operates as a bank holding company, which subjects it to rigorous supervisory requirements and high compliance costs. The company is sensitive to interest rate volatility and changes in federal student loan policies, both of which can impact loan demand. It must also compete for members against established giants like JPMorgan Chase while maintaining high marketing efficiency. Additionally, because it is a digital-first entity, any major cybersecurity breach or system outage could cause lasting reputational and financial damage.

Valuation comparison

SoFi Technologies carries a higher valuation on both Forward P/E and P/S ratio metrics compared to American Express, reflecting its faster growth profile.

Sector benchmark uses the SPDR XLF sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

I'd go with American Express. SoFi is certainly putting up impressive numbers. Revenue is growing at a rapid clip, member growth keeps accelerating, and the company is consistently profitable now after years of losses. SoFi is also expanding well beyond its student loan roots into banking, investing, and even technology infrastructure for other financial companies. The company has an ambitious vision.

But SoFi is still a relatively young business proving itself through a full economic cycle, and the stock has been volatile even when results come in strong. That kind of swing isn't comfortable for every investor.

Amex, meanwhile, keeps doing what it has always done well. Premium card spending is accelerating, retention among high-income customers remains excellent, and the company just posted its best quarterly card spending growth in three years. Management reaffirmed strong guidance for the year, and the brand's pricing power gives it a level of staying power that newer fintech companies still have to earn.

I'd rather own the proven compounder while SoFi continues building its track record.

JPMorgan Chase is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, JPMorgan Chase, Mastercard, and Visa. The Motley Fool has a disclosure policy.