The marijuana industry includes companies directly related to the research, development, and distribution of cannabis products, as well as companies that indirectly support these operations. Traditional stock market indices like the Nasdaq have begun to include more companies from the marijuana industry as a growing number of U.S. states and countries around the world legalize marijuana in one or more forms. Now, companies like Aphria Inc. (APHA) and OrganiGram Holdings Inc. (OGI) are being traded on the Nasdaq and other U.S. exchanges rather than the over-the-counter market. Many companies in the young industry are losing money due both to the economic downturn and as they invest heavily to focus on rapidly expanding revenue. The coronavirus pandemic, to date, has had little impact on most of these companies' growth.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically underperformed the broader market, with a total return of -50.1% compared to the S&P 500's total return of 9.5% over the past 12 months. These market performance numbers and the statistics in the tables below are as of July 29.
Here are the top 3 marijuana stocks on the Nasdaq with the best value, the fastest sales growth, and the best performance.
Best Value Marijuana Stocks on the NASDAQ
These are the marijuana stocks on the Nasdaq with the lowest 12-month trailing price-to-sales (P/S) ratio. For young companies that have not reached profitability, this can provide an idea of how much business you’re getting for each dollar invested.
|Best Value Marijuana Stocks on the NASDAQ|
|Price ($)||Market Cap ($M)||12-Month Trailing P/S Ratio|
|Village Farms International Inc. (VFF)||6.33||356.1||2.3|
|Amyris Inc. (AMRS)||4.44||908.5||3.2|
|Tilray Inc. (TLRY)||8.12||1,014||4.3|
- Village Farms International Inc.: Village Farms International is a Canada-based agricultural producer. In addition to growing standard vegetables like tomatoes, bell peppers, and cucumbers, the company now also produces cannabis. Village Farms International announced earlier this month that had agreed to become one of six equal shareholders owning just under 16% of DutchCanGrow Inc., a Netherlands-based cannabis company. DutchCanGrow aims to become one of a limited number of licensed cannabis growers when the Dutch government allows the first legal recreational cannabis market in Europe.
- Amyris Inc.: Amyris is an industrial biotechnology company that produces high performance products for the health and wellness, clean beauty, and flavor and fragrance markets. The company uses cannabis in some of its products. On May 8, Amyris reported sales growth of 103% for Q1 2020, which ended March 31, 2020. The company said it had seen limited impact on its business, thus far, from the COVID-19 pandemic.
- Tilray Inc.: Tilray is a pharmaceutical company focused on the development of cannabis-based medicines, drugs, drops, and oil products. The company is headquartered in Canada but serves clients worldwide. Tilray reported revenue growth of 126% for Q1 2020, which ended March 31, 2020.
Fastest Growing Marijuana Stocks on the NASDAQ
These are the marijuana stocks on the Nasdaq with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales show that a company’s business is growing. This is often used to measure growth of young companies that have not yet reached profitability.
|Fastest Growing Marijuana Stocks on the NASDAQ|
|Price ($)||Market Cap ($B)||Revenue Growth (%)|
|GW Pharmaceuticals PLC (GWPH)||126.26||3.9||207.4|
|Cronos Group Inc. (CRON)||7.08||2.5||180.7|
|Tilray Inc. (TLRY)||8.12||1.0||126.2|
- GW Pharmaceuticals PLC: GW Pharmaceuticals is a U.K.-based biopharmaceutical company that engages in the research and development of cannabinoid medicines for the treatment of cancer pain, Multiple Sclerosis, and neuropathic pain.
- Cronos Group Inc.: Cronos Group is a Canada-based diversified cannabis company that produces and distributes medical cannabis products as well as cannabis oils. On May 8, the company posted net revenue growth of 180.7% and a reported operating loss of $45.1 million for Q1 2020, which ended March 31, 2020. The company incurred an inventory write-down of $8.0 million related to product price pressure due to oversupply in the Canadian market. Cronos Group also noted that its global distribution channels were experiencing disruptions related to the coronavirus pandemic.
- Tilray Inc.: See above for company description.
Best Performing Marijuana Stocks on the NASDAQ
These are the marijuana stocks on the Nasdaq that had the best returns or smallest declines in total return over the past 12 months out of the companies we looked at.
|Best Performing Marijuana Stocks on the NASDAQ|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|Amyris Inc. (AMRS)||4.44||908.5||57.5|
|GW Pharmaceuticals PLC (GWPH)||126.26||3,924||-24.1|
|Cara Therapeutics Inc. (CARA)||17.04||797.4||-26.0|
|ETFMG Alternative Harvest ETF (MJ)||N/A||N/A||-50.1|
- Amyris Inc.: See above for company description.
- GW Pharmaceuticals PLC: See above for company description.
- Cara Therapeutics Inc.: Cara Therapeutics is a clinical-stage biopharmaceutical company engaged in the research, development, and commercialization of pharmaceutical products. The company offers novel drugs used to treat human diseases associated with pain and inflammation. On May 11, Cara Therapeutics reported revenue growth of 84.1% for Q1 2020, which ended March 31, 2020.
Nasdaq. "Aphria Inc. Common Shares." Accessed Jul. 29, 2020.
Nasdaq. "Organigram Holdings Inc. Common Shares." Accessed Jun. 29, 2020.
YCharts. "Financial Data." Accessed Jul. 29, 2020.
Village Farms International Inc. "Village Farms International Partners with Dutch Enterprise to Pursue First Legal Recreational Cannabis Market in Europe." Accessed Jul. 29, 2020.
Amyris Inc. "Amyris, Inc. Reports First Quarter 2020 Results." Accessed Jul. 29, 2020.
Tilray Inc. "Tilray, Inc. Reports First Quarter 2020 Financial Results." Accessed Jul. 29, 2020.
Cronos Group Inc. "Cronos Group Reports 2020 First Quarter Results." Accessed Jul. 29, 2020.
Cara Therapeutics Inc. "Cara Therapeutics Reports First Quarter 2020 Financial Results." Accessed Jul. 29, 2020.