American Express vs. SoFi: Dueling Financial Giants
As investors weigh their options for 2026, two financial stocks are drawing attention: American Express (NYSE:AXP) and SoFi Technologies (NASDAQ:SOFI). While both companies have strengths, they also face unique challenges. American Express boasts a premium membership model and a massive cardholder network, driving consistent spending.
With nearly 86.6 million proprietary cards worldwide as of late 2025, American Express has a stable base to tap into. Its strategic partnership with Delta Air Lines accounts for about 13% of total billed business, but this concentration adds risk. Revenue reached $80.5 billion in FY 2025, growing 10%, and net income was approximately $10.8 billion, showing consistent profitability.
However, SoFi Technologies is rapidly scaling its digital banking and technology platform to capture a younger demographic. The company operates a digital-first platform with nearly 14.7 million members, offering banking, borrowing, and investment services. It also owns a technology platform segment through Galileo and Technisys, powering 128 million global accounts.
SoFi's revenue grew to $4.8 billion in FY 2025, up 28.8% from the prior year, with net income of approximately $481.3 million. This marks a successful shift into sustained profitability. The debt-to-equity ratio is about 0.2x, indicating conservative borrowing.
When comparing the two companies, American Express appears more conservatively valued. Its Forward P/E metric is 19.3x compared to SoFi's 30.8x, and its P/S ratio is 2.9x versus SoFi's 4.9x. While SoFi makes a compelling growth story, American Express offers durability alongside growth.
The Motley Fool Stock Advisor analyst team recently identified the top 10 stocks for investors to buy now, and American Express wasn't included. However, this doesn't necessarily mean it's not a good investment choice.