Market Cap: $39.445M
Market Cap: $1.725B
The United States and Canada may share a border, but there are very inherent differences in how each country views and treats marijuana. The U.S. has been plagued with many restrictions because marijuana is still considered a controlled substance at the federal level. As of November 2020, a total of 35 states as well as the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands allow pot for medical use. And many states are still grappling with the issue of recreational usage.
OrganiGram Holdings (OGI) is a licensed producer of medical marijuana products. It began trading on the Nasdaq in May of 2019. This company’s portfolio includes dry cannabis and cannabis oil, along with accessories like vaporizers that can be purchased on its website. OrganiGram’s share price has declined by about 29% year-to-date.
9. Emerald Health Therapeutics
Aurora Cannabis (ACB) debuted on the Toronto Stock Exchange (TSX) in July 2017 and on the NYSE in October 2018. In addition to producing dry cannabis, Aurora received a license to sell cannabis oil in January 2017. It has been around longer in the OTC market—at one point returning 347% over a one-year period. In May 2018, Aurora Cannabis purchased MedReleaf (OTC: LEAF) for $2.5 billion. Aurora continued its acquisition strategy by buying organic cannabis producer Whistler Medical Marijuana Corporation in 2019. Aurora stock is down roughly 59.6% year-to-date.
While uncertainty prevails in the United States, investors could throw their hands into the pot (no pun intended) by investing in Canadian stocks that are either listed on major exchanges or traded in the over-the-counter (OTC) markets. Most of these stocks can be labeled as penny stocks.
Namaste Technologies Inc. (OTC: NXTTF) focuses on the e-commerce side of the medical marijuana business. The company operates 32 sites in 20 different countries. In 2017, Namaste added CannMart into its portfolio, which has a distribution network in Toronto. This helps the site develop its retail distribution. The stock has declined by 38.7% year-to-date.
Market Cap: $2.595B
Penny stocks may carry a significantly higher risk component.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically underperformed the broader market. MJ has provided a total return of -28.6% over the past 12 months, well below the Russell 1000’s total return of 25.2%. These market performance numbers and all statistics in the tables below are as of Jan. 6, 2022.
The marijuana industry is made up of companies that either support or are engaged in the research, development, distribution, and sale of medical and recreational marijuana. Cannabis has begun to gain wider acceptance and has been legalized in a growing number of nations, states, and other jurisdictions for recreational, medicinal, and other uses. Some of the biggest companies in the marijuana industry include Canopy Growth Corp. (CGC), Cronos Group Inc. (CRON), and Tilray Inc. (TLRY). Many big marijuana companies have continued to post sizable net losses as they focus on investing in equipment to speed up revenue growth.
GRWG is top for value and growth, and IIPR is top for momentum
Below we look at the top five marijuana stocks with the best value, the fastest growth, and the most momentum.
Best Value Marijuana Stocks
These are the marijuana stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in the early stages of development or industries suffering from major shocks, this can be substituted as a rough measure of a business’s value. A business with higher sales could eventually produce more profit when it achieves (or returns to) profitability. The P/S ratio shows how much you’re paying for the stock for each dollar of sales generated.
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BNN Bloomberg determines the listing of cannabis companies in the above stock chart by determining the total dollar value of all shares exchanged over the prior three-month period. BNN Bloomberg updates the list every quarter.