DAN vs THRM: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: DAN is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. DAN and THRM share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined DAN and THRM exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Dana Incorporated makes the parts that put power on the road: axles, driveshafts, differentials, electrified propulsion units, and the sealing and thermal-management products that go around them. Founded in 1904 and based in Maumee, Ohio, it sells mostly to vehicle manufacturers rather than to consumers, and its content sits under pickups, SUVs, medium- and heavy-duty trucks, and an aftermarket channel that keeps older vehicles running. As of mid-2026 the company reports in two segments. Light Vehicle did ~$1.38 billion of sales in the second quarter and Commercial Vehicle did ~$631 million, so roughly two-thirds of the revenue now rides on the light-truck and SUV cycle and about a third on commercial trucks. The Off-Highway unit that used to sit alongside them, the construction, agriculture and mining driveline business, was sold to Allison Transmission for ~$2.7 billion and closed on January 2, 2026.

Full DAN guide

Gentherm Incorporated, based in Novi, Michigan, designs and makes thermal and pneumatic comfort products. Its core business is automotive climate and comfort: Climate Control Seats (heated, ventilated and cooled seats) generated about $218 million of the company's record ~$416 million of product revenue in Q2 2026, alongside steering wheel heaters, battery thermal products, lumbar and massage systems, and a small medical patient temperature management unit (~$11 million a quarter). On October 1, 2026 it completed a Reverse Morris Trust combination with Modine Manufacturing's Performance Technologies business (about $1.1 billion of revenue), which adds engine and battery cooling, radiators and coolers for commercial vehicles, off-highway equipment and power generation. Former Modine holders own roughly 43.6% of the combined company.

Full THRM guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• DAN drivers: The Off-Highway sale reset the balance sheet; Margin self-help is showing up in the numbers.
• THRM drivers: Modine Performance Technologies integration; Seat comfort content growth.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Dana sells to a handful of large vehicle manufacturers, so a production cut at one customer flows straight into revenue with very little to cushion it. For THRM, integration is the largest new risk: combining two engineering and manufacturing organizations across many countries can disrupt customers and delay synergies.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick DAN if you believe its drivers more; THRM if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the DAN and THRM guides.

DAN. Second-quarter sales of ~$2.01 billion came in above consensus and adjusted EBITDA of ~$207 million lifted the margin ~270 basis points year over year, which is what pushed management to raise the full-year outlook by roughly $225 million of sales. At ~$29.70 a share the stock is near ~15x the midpoint of guided adjusted EPS, while the guided free cash flow midpoint of ~$325 million is close to a tenth of the ~$3.2 billion market cap, so the equity and earnings multiples tell different stories. Enterprise value against ~$800 million to ~$850 million of guided adjusted EBITDA works out to roughly five times, low by broad-market standards and normal for a cyclical supplier at a point in the cycle nobody is sure about.

THRM. Standalone figures exclude Modine Performance Technologies, which closed on October 1, 2026, so trailing ratios will shift sharply once combined results are reported. Against management's ~$322 million pro forma adjusted EBITDA (including synergies), the market value implies a low single digit to mid single digit EBITDA multiple before debt, a discount that reflects auto and truck cyclicality and integration uncertainty. On the balance sheet, standalone Gentherm ended June 2026 with $273 million of debt, $213 million of cash, net leverage of about 0.3x and $502 million of liquidity. At closing, the spun-off business borrowed $250 million under a delayed-draw term loan administered by Bank of America, priced at SOFR plus 1.125% to 2.0% depending on leverage, which now sits inside the combined company, and the special dividend paid out about $63.5 million. Share count rose to roughly 54.4 million after 23.7 million new shares went to Modine holders.

Headline figures (approximate, August 2026): DAN shows revenue (ttm) ~$7.66B, market cap ~$3.2B, q2 2026 adjusted ebitda margin ~10.3% (vs ~7.6%), fy2026 guidance (sales / adj. ebitda) ~$7.65B-$7.85B / ~$800M-$850M; THRM shows revenue (ttm, standalone) ~$1.55B, 2026 revenue guidance (standalone) ~$1.55B to $1.65B, pro forma combined revenue ~$2.6B, q2 2026 adjusted eps ~$0.75.

DAN and THRM are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined DAN and THRM exposure against your real portfolio. It is not an investment adviser.