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

Choosing between the established prestige of American Express (NYSE:AXP) and the digital-first aggression of SoFi Technologies (NASDAQ:SOFI) requires a careful look at how you want to gain financial exposure in 2026.

While American Express relies on a closed-loop network and a high-value customer base to drive luxury spending, SoFi Technologies aims to be a one-stop-shop for all digital banking needs. Comparing these two involves weighing the stability of a financial giant against the rapid scaling of a modern fintech challenger.

The case for American Express

American Express focuses on its premium membership model to attract high-spending cardholders, maintaining nearly 86.6 million proprietary cards worldwide as of late 2025. Its strategic partnership with Delta Air Lines is vital, as this single relationship accounts for approximately 13 percent of total billed business. Customer concentration like this adds a layer of risk to the business, though the company continues to expand through new loyalty partnerships with brands like Accor.

In FY 2025, revenue reached roughly $80.5 billion, representing growth of close to 10% compared to the previous year. The company generated net income of approximately $10.8 billion during this period, showing consistent profitability. This performance resulted in a net margin of about 14%, which is a measure of how much profit is kept from every dollar of sales.

As of its December 2025 balance sheet, the debt-to-equity ratio is nearly 1.7x, which measures total debt against shareholder equity to show reliance on borrowed funds. Free cash flow, representing cash generated after capital expenses, reached approximately $16.0 billion for the fiscal year.

The case for SoFi Technologies

SoFi Technologies operates a digital-first platform providing banking, borrowing, and investment services to nearly 14.7 million members. The company also owns a technology platform segment through its Galileo and Technisys brands, which power 128 million global accounts. Recently, the firm has expanded its footprint in fintech stocks by acquiring assets from PrimaryBid and partnering with Notre Dame Athletics.

In FY 2025, revenue reached close to $4.8 billion, a significant increase of roughly 28.8% over the prior year. The company reported net income of approximately $481.3 million for the same period, marking a successful shift into sustained profitability. This indicates a net margin of nearly 10.1%, which reflects the percentage of revenue remaining after all expenses are paid.

As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.2x, suggesting a conservative amount of debt relative to equity. Free cash flow was negative at nearly $4.0 billion, which reflects the cash used for growth and loan originations after accounting for capital expenditures.

Risk profile comparison

American Express faces intense competition from established networks like Visa and Mastercard. The company is also vulnerable to shifts in consumer spending caused by inflation or economic downturns. Regulatory pressure regarding interchange fees and merchant contracts remains a persistent concern for its premium fee-based model.

SoFi Technologies must navigate the complexities of being a bank holding company under the oversight of regulatory bodies. It faces stiff competition from traditional banking giants like JPMorgan Chase that are investing heavily in digital tools. The company also carries risks related to its rapid expansion, as integrating new acquisitions can strain operational resources.

Valuation comparison

American Express appears to be the more conservatively valued option for investors right now. This Forward P/E metric compares a company's stock price to its future earnings estimates. The P/S ratio measures a company's stock price against its annual revenue.

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, though SoFi makes this a harder call than it was earlier in the year. SoFi just delivered its 11th consecutive profitable quarter, raised its full-year outlook above analyst expectations, and is adding members at a record pace. Revenue grew at an extraordinary rate, and the cross-selling momentum across its platform is accelerating in a way that suggests the "everything app" strategy is starting to click. For a younger investor with a longer horizon, SoFi is worth a serious look.

But American Express has something SoFi is still building toward: a deeply entrenched customer base that skews wealthy, spends consistently, and churns at an exceptionally low rate. Premium card spending is accelerating, and the brand's pricing power is a competitive advantage that takes decades to build. The stock has also significantly outperformed SoFi year to date, which tells you something about where investor confidence sits.

SoFi might be the more exciting growth story, but for a long-term investor who values durability alongside growth, American Express is the more comfortable place to put your money right now.

American Express is an advertising partner of Motley Fool Money. JPMorgan Chase 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 recommends Delta Air Lines. The Motley Fool has a disclosure policy.