American Express vs. S&P Global: Which Financial Stock Is a Better Buy for 2027?
2026-11-14 21:31
•Seena Hassouna •The Motley Fool
••••• ••••••• Axe Cap view
American Express vs. S&P Global: Which Financial Stock to Watch for 2027?
A look at premium consumer spending and passive investing trends through the lens of American Express and S&P Global.
American Express (AXP) and S&P Global (SPGI) represent distinct slices of the financial sector. Amex rides on a premium spending base with strong $72 billion revenue and steady 15% net margins. Its younger, affluent clientele offers long-term growth potential, especially as consumer habits shift post-pandemic. S&P Global, on the other hand, relies on its financial data and credit ratings business, boasting 29% net margins on $15 billion revenue. Its growth leans heavily into passive investing trends, which means steady but possibly slower expansion. For South Africans, the rand’s movement against the dollar (USD/ZAR) will influence the attractiveness of these stocks in rand terms, and the USD/ZAR should be watched closely since both are US dollar-listed. Amex’s consumer focus may offer more resilience if local economic conditions tighten credit, while S&P’s business could slow if financial markets falter. This view might be wrong if regulatory changes hit credit or ratings businesses hard, or if global economic recovery stalls. this is just our opinion and not financial advice
Prefer American Express for exposure to consumer spending with a buy-and-hold mindset, but watch S&P Global as a solid hold if you want less cyclicality. Keep an eye on USD/ZAR as currency swings impact returns.
- American Express (AXP)
- S&P Global (SPGI)
- USD/ZAR
- Regulatory changes impacting credit or ratings businesses
- Global economic slowdown weakening passive investing and premium spending
6/10
The article compares American Express and S&P Global as investment options for 2027. American Express operates a closed-loop payment network with $72.2B in FY2025 revenue and 15% net margins, benefiting from premium consumer spending. S&P Global provides financial ratings and data with $15.3B in FY2025 revenue and superior 29.2% net margins, benefiting from passive investing growth. The author recommends American Express for its younger customer base and different growth driver, while S&P Global suits investors seeking exposure to passive investing trends.
Our take is based on reporting first published by The Motley Fool.