American Express vs. S&P Global: Which Financial Stock Is a Better Buy for 2027?

American Express (NYSE:AXP) and S&P Global (NYSE:SPGI) serve as critical infrastructure for the global economy. Choosing between the premium payments leader and the dominant data giant requires balancing consumer credit trends against capital market activity.

These companies represent two distinct corners of the market. One relies on credit demand and high-end consumer spending, while the other functions as a gatekeeper of financial intelligence. We compare these businesses to determine which model offers a more compelling path for investors.

The case for American Express

American Express operates a unique "closed-loop" network, acting as both the card issuer and the payment processor for its transactions. In its latest annual report, filed for FY 2025, the company detailed how this integrated model allows it to capture revenue from both cardholder fees and merchant discounts. Its global network now spans more than 100 million merchant locations across over 200 countries and territories. The company drives growth through premium strategic partnerships with Delta Air Lines (NYSE:DAL) and Marriott International (NASDAQ:MAR). It also maintains relationships with Amazon(NASDAQ:AMZN), though it recently reclassified its small-business co-branded portfolios with that partner as held for sale. The company further streamlined its focus by exiting its investment in Global Business Travel Group in September 2026.

In FY 2025, revenue reached nearly $72.2 billion, representing a growth rate of approximately 9.5% over the prior year. This performance translated into net income of roughly $10.8 billion for the period. The company has maintained a consistent net margin of close to 15%, indicating steady profitability as it expands its international presence. High-spending cardholders provide a resilient revenue stream that often outperforms broader averages of consumer spending during economic shifts.

As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 1.7x. This metric measures total debt relative to shareholders' equity, indicating how much the company uses borrowed funds to finance its assets. The current ratio, which compares short-term assets to short-term liabilities, was nearly 0.3x. During FY 2025, the company generated roughly $16.0 billion in free cash flow, defined as cash flow from operations minus capital expenditures.

The case for S&P Global

S&P Global provides essential benchmarks, credit ratings, and data analytics to the global capital and commodity markets. In its latest annual report, filed for FY 2025, the company highlighted its role as a vital gatekeeper for asset managers, investment banks, and insurance companies. This dominant position in the fintech stocks space is supported by a global workforce of more than 40,000 employees. The company provides workflow solutions across capital, energy, and automotive markets in 43 different countries. Its diversified segments, including credit ratings and commodity insights, create a high-moat business model where customers often rely on its proprietary data for daily decision-making.

In FY 2025, revenue reached approximately $15.3 billion, an increase of nearly 7.9% from the prior year. The company reported net income of close to $4.5 billion for that period. This resulted in a strong net margin of approximately 29.2%, reflecting the highly profitable nature of selling subscription-based data and ratings. The growth in net income demonstrates the efficiency of its capital-light business model as it scales its digital offerings.

As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 0.5x. This indicates a conservative use of debt relative to shareholders' equity. The current ratio was approximately 0.8x, indicating the company's ability to cover its upcoming short-term obligations. Free cash flow for the year was close to $5.5 billion, representing the cash available for dividends and acquisitions after capital expenditures.

Risk profile comparison

American Express faces intense global competition from Visa (NYSE:V) and Mastercard (NYSE:MA), along with a growing ecosystem of digital wallets and alternative payment platforms. The company also relies heavily on its partner Delta Air Lines, meaning any loss or adverse renegotiation of that relationship could harm revenue. Additional risks include regulatory scrutiny of interchange fees and heightened sensitivity to macroeconomic downturns, which could lead to higher delinquency and write-off rates across its card portfolios.

S&P Global relies heavily on complex IT infrastructure and cloud services, which create vulnerabilities to cyberattacks and data breaches that could compromise client trust. The company faces competitive pressure from both traditional data providers and new AI-driven initiatives that could offer lower-cost alternatives. Furthermore, its ratings business is highly sensitive to market volatility and debt issuance volumes, which can fluctuate significantly in response to interest rate movements and broader economic conditions.

Valuation comparison

American Express appears more affordable based on its Forward P/E, while S&P Global trades at a higher multiple, likely due to its superior net margin.

Valuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.

Which stock would I buy for 2027?

These two stocks run on different long-term engines, and that difference matters more than any single metric. Amex grows when affluent households pay for membership, so its future depends on Millennial and Gen Z customers choosing premium cards and staying with them. Card fee growth from product refreshes shows that engine is working, and you can track it every quarter.
S&P Global has a quieter engine that the credit-and-ratings story hides. Its index business earns a fee on every dollar flowing into funds that track its benchmarks, so revenue grows as more savers move to index investing, whether or not anyone issues a bond. That tailwind is why the business looks less cyclical over a decade than its ratings arm suggests.
If you already own an S&P 500 index fund, you pay S&P Global fees today, and you hold a slice of its parent company inside your fund. Amex adds something that fund doesn't: a direct bet on premium spending and lending. I would buy Amex because you get a different driver and a younger customer base, which gives it years of runway. Choose S&P if you want a pure bet on the growth of passive investing.

American Express is an advertising partner of Motley Fool Money. Seena Hassouna has positions in Mastercard. The Motley Fool has positions in and recommends Amazon, American Express, Mastercard, S&P Global, and Visa. The Motley Fool recommends Delta Air Lines and Marriott International. The Motley Fool has a disclosure policy.