Modine or Dana: Which Stock Should Investors Place Their Bet On?

Core Insights - Modine Manufacturing Company (MOD) and Dana Incorporated (DAN) are both key players in the thermal-management products sector for the automotive industry, with Modine also involved in HVAC and agricultural equipment, while Dana focuses on motion/drive systems for vehicles and machinery [1] Modine Stock Analysis - In Q1 FY26, Modine reported net sales of $682.8 million, a 3% increase from $661.5 million year-over-year, driven by the Climate Solutions segment [4] - Modine anticipates net sales growth of 10-15% for FY26, supported by recent acquisitions such as AbsolutAire and L.B. White, which enhance its market presence [5][7] - The company expects adjusted EBITDA for FY26 to be between $440-$470 million, reflecting a growth of 12-20% [7] - Performance Technologies segment faced challenges with a 4% decline in heavy-duty equipment sales and an 8% drop in on-highway sales, leading to a projected revenue decrease of 2-12% for FY26 [8] Dana Stock Analysis - Dana reported sales of $1.9 billion from continuing operations in Q2 2025, alongside a $2.7 billion divestiture of its Off-Highway business to streamline operations [9][10] - The company expects to generate approximately $2.4 billion in net cash from the sale, with plans to use $2 billion for debt repayment and initiate a $1 billion capital return program [10] - Dana's cost-savings initiative has realized $60 million in savings in Q2, contributing to a target of a 10% adjusted EBITDA margin by 2026 [11] - For 2025, Dana forecasts revenues between $7.25 billion and $7.55 billion, with an adjusted EBITDA margin of 7.4-8.1% [11] Valuation and Estimates - Modine trades at a forward sales multiple of 2.66X, while Dana's forward sales multiple is at 0.35X [13] - The Zacks Consensus Estimate for Modine's FY26 EPS indicates a year-over-year growth of 14.3%, while Dana's FY25 EPS suggests a significant growth of 50% [15][16] Conclusion - Modine's growth is supported by strategic acquisitions but faces challenges in its Performance Technologies segment due to market demand [17] - Dana's strong debt reduction strategy, capital return program, and focus on electrified systems position it favorably for profitability and margin expansion through 2026 [19]