Northern Trust vs. S&P Global: Which Financial Stock Is a Better Buy in 2026?

Choosing between Northern Trust Corp (NASDAQ:NTRS) and S&P Global Inc (NYSE:SPGI) means weighing a traditional wealth management leader against a global data giant. This comparison examines which stock offers the better path for your portfolio in 2026.

Northern Trust is a leader in managing wealth for the world's most affluent individuals and institutions. S&P Global provides the essential data and credit ratings that keep global markets functioning. While both firms are successful, their growth rates and business models differ significantly, making the choice between them a strategic decision.

The case for Northern Trust

Northern Trust provides asset servicing and investment management to a global clientele of sovereign wealth funds and institutional investors. The company focuses on high-touch service and specialized banking solutions in the financial stocks sector. It serves these elite clients through a network of offices across major international markets.

In FY 2025, revenue reached approximately $8.1 billion. This was a decrease of nearly 3% compared to the prior year. The company delivered a net income of close to $1.7 billion, down from $1.97 billion, resulting in a net margin of roughly 21%.

The case for S&P Global

S&P Global is a powerhouse in financial intelligence, providing credit ratings and market benchmarks to participants like investment banks and automotive manufacturers. The firm's products are essential for participants in the capital and commodity markets who require data and workflow solutions. Its expansive reach includes operations in dozens of countries and a massive global workforce.

During FY 2025, the company generated revenue of approximately $15.4 billion. This marked an increase of nearly 8% over the previous fiscal year. Net income was nearly $4.5 billion, up from $3.9 billion, which supported a healthy net margin of about 29.2%.

Risk profile comparison

Northern Trust faces risks from market volatility and fluctuating interest rates because much of its revenue is fee-based. The firm relies heavily on complex IT systems, making it vulnerable to cyber-attacks or data breaches. It also operates in a highly regulated environment where compliance failures can lead to significant penalties.

S&P Global is exposed to technological risks and depends on third-party cloud providers such as Amazon.com Inc (NASDAQ:AMZN). Evolving regulations regarding artificial intelligence and environmental reporting could increase its operational costs. Additionally, the company must successfully manage the planned spin-off of its mobility segment to avoid financial disruptions.

Valuation comparison

Northern Trust appears significantly cheaper than S&P Global when evaluating its Forward P/E, which compares the stock price to future earnings estimates.

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?

In a ‘K-shaped’ economy where the wealthy keep getting wealthier while most people have a smaller share of overall wealth, having a position in the leading asset management firm for ultra-high-net-worth individuals makes sense.

Northern Trust has a lot of room to grow in serving family offices, even though it is already its core business. Just 15% of the business’s family office clients are outside the U.S., yet the wealth of those families is growing faster than that of those inside the U.S. Management sees AI as a way to boost the productivity of its client management teams by boosting personalization to appeal to new and existing clients.

Serving the rich is a highly competitive market, but Northern Trust still retains its brand as the firm that serves the most successful people. That’s a competitive moat. The company is also expanding the number of alternative asset funds it offers clients, including venture capital and private equity.

S&P Global, meanwhile, has a different business model. It sits at the core of the information economy in finance, providing credit ratings, analysis, and news on municipal bonds, corporate debt, and other instruments. Analysts see S&P boosting its revenues by about 8% in 2026, with a stronger increase in profits.

Yet Northern Trust should boost its sales by 20% in 2026 with a ~23% rise in net income. That’s exceptional growth if it comes to fruition. Looking at the investment ratios that are significantly cheaper on a forward price-to-earnings and price-to-sales basis compared to the S&P, combined with that growth and Northern Trust, gets the nod.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and S&P Global. The Motley Fool has a disclosure policy.