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), Tilray Inc. (TLRY), and Aurora Cannabis Inc. (ACB). Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically underperformed the broader market with a total return of -56.5% compared to the S&P 500's positive return of 15.5% over the past 12 months. These market performance numbers and the statistics in the tables below are as of February 26.
Here are the top 3 marijuana stocks with the best value, the fastest sales 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 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|
|Price ($)||Market Cap ($M)||12-Month Trailing P/S Ratio|
|Amyris Inc. (AMRS)||3.18||469.2||2.2|
|Aphria Inc. (APHA.TO)||CA$5.10||CA$1,362||2.9|
|Trulieve Cannabis Corp. (TRUL.CX)||CA$13.10||CA$1,446||5.2|
- Amyris Inc.: Amyris is an industrial biotechnology company that produces high performance products for the health and wellness, clean beauty, and flavor and fragrance markets. The company uses cannabis in some of its products. Amyris announced earlier this month that Han Kieftenbeld was joining the company and was being appointed to the role of Chief Financial Officer (CFO), effective March 16, 2020. Kieftenbeld most recently served as CFO at Innophos Holdings Inc. (IPHS), an international science-based producer of ingredients for health and nutrition brands and other products.
- Aphria Inc.: Aphria is a Canada-based company engaged in the production and sale of medical and recreational cannabis.
- Trulieve Cannabis Corp.: Trulieve Cannabis is a holding company that, through its subsidiaries, engages in the cultivation, possession, sale, and distribution of medical cannabis.
Fastest Growing Marijuana Stocks
These are the marijuana stocks with the highest year over year (YOY) sales growth for the most recent quarter. Rising sales show that a company’s business is growing. This is often used to measure growth of young companies that have not yet reached profitability.
|Fastest Growing Marijuana Stocks|
|Price ($)||Market Cap ($M)||Revenue Growth (%)|
|The Valens Co. (VLNS.V)||CA$3.73||CA$468.1||208,500|
|Harvest Health & Recreation Inc. (HARV.CX)||CA$3.15||CA$910.0||136,400|
|GW Pharmaceuticals Plc. (GWPH)||117.05||3,618||2,550|
- The Valens Co.: The Valens Company, formerly Valens GroWorks Corp., is a Canada-based cannabis company specializing in processing and formulation.
- Harvest Health & Recreation Inc.: Harvest Health & Recreation is a Canada-based cannabis company that specializes in cultivation, dispensaries, and production facilities for medicinal and recreational marijuana. The company announced last week the acquisition of Arizona Natural Selections for a non-material undisclosed amount of stock. Included in the acquisition were four vertical medical licenses in Arizona.
- GW Pharmaceuticals Plc.: GW Pharmaceuticals is a U.K.-based biopharmaceutical company that engages in the research and development of cannabinoid medicines for the treatment of cancer pain, Multiple Sclerosis, and neuropathic pain.
Marijuana Stocks with the Most Momentum
These are the marijuana stocks that had the highest total return over the last 12 months. Only two stocks in the marijuana industry have provided investors with a positive total return over the past 12 months. We look at those two stocks below.
|Marijuana Stocks with the Most Momentum|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|Innovative Industrial Properties Inc.(IIPR)||96.54||1,645||27.5|
|Sprott Inc. (SII.TO)||CA$3.18||CA$807.1||22.9|
|S&P 500 (SPY)||N/A||N/A||15.5|
|ETFMG Alternative Harvest ETF (MJ)||N/A||N/A||-56.5|
- Innovative Industrial Properties Inc.: Innovative Industrial Properties is a real estate company that engages in the acquisition, ownership and management of industrial properties. The company's real estate investments consist primarily of properties used for the cultivation and production of medical-use cannabis. Innovative Industrial Properties announced earlier this month that it had acquired a licensed cannabis processing facility in Toledo, Ohio in a sale-leaseback transaction with Green Thumb Industries Inc. (GTII).
- Sprott Inc.: Sprott is a Canada-based alternative asset management company that provides investment management services, including portfolio management, broker-dealer activities, and consulting services to its clients, including those from the cannabis industry. The company announced late last month that it had completed its acquisition of Tocqueville Asset Management LP gold strategies for total consideration of up to $50 million, a transaction which adds approximately $1.8 billion to the company's total assets under management (AUM).
YCharts. "Financial Data," Accessed Feb. 26, 2020.
Amyris Inc. "Amyris, Inc. Appoints Han Kieftenbeld As Chief Financial Officer," Accessed Feb. 26, 2020.
Harvest Health & Recreation Inc. "HARVEST HEALTH & RECREATION INC. ANNOUNCES ACQUISITION OF ARIZONA NATURAL SELECTIONS," Accessed Feb. 26, 2020.
Innovative Industrial Properties Inc. "Innovative Industrial Properties Acquires Ohio Property and Enters Into Long-Term Lease with Green Thumb Industries (GTI)," Accessed Feb. 26, 2020.
Sprott Inc. "Sprott Completes Acquisition of Tocqueville Gold Strategies and Provides Preliminary AUM Update," Accessed Feb. 26, 2020.