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 only recently has begun to gain wider acceptance, and has been legalized in various regions for recreational, medicinal and other uses. The biggest companies include Canopy Growth Corp. (CGC), Tilray Inc. (TLRY), and Aurora Cannabis Inc. (ACB), but the industry has scores of upstarts that are trying to grab a piece of the market. The marijuana industry, as measured by the ETFMG Alternative Harvest ETF (MJ), has substantially underperformed the S&P 500 over the past year. MJ posted a 12-month trailing total return of -40.8% versus the S&P's 21.6% gain as of November 26.
Here are the top 3 marijuana stocks with the best value, the fastest earnings growth, and the most momentum. Based on numbers as of November 26.
Marijuana Stocks with the Best Value
Here are the marijuana stocks with the lowest 12-month trailing price-to-sales (P/S) ratio in the sector. The P/S ratio is useful for valuing growth stocks that often have yet to turn a profit, and a low ratio shows you’re paying less for each dollar of revenue generated by the company.
|Marijuana Stocks with the Best Value|
|Price ($)||Market Cap ($B)||12-Month Trailing P/S|
|Village Farms International Inc. (VFF)||6.30||0.3||2.0|
|Amyris Inc. (AMRS)||3.90||0.4||2.6|
|iAnthus Capital Holdings Inc. (IAN.CX)||1.88||0.3||5.4|
- Village Farms International Inc.: Village Farms manages and operates agricultural greenhouse facilities. While primarily a grower of tomatoes, bell peppers, and cucumbers, the company has converted some space for the growing of cannabis.
- Amyris Inc.: Amyris is an integrated industrial biotechnology company that provides bioscience solutions, and produces and distributes chemical products. Amyris is one of several firms "developing platforms to biosynthesize cannabinoids via fermentation" , which can provide purity and reliability at a lower price.
- iAnthus Capital Holdings Inc.: iAnthus is an integrated cannabis company, operating cultivation, processing, and dispensary facilities around the U.S. On October 17, the company nominated five new board members to be confirmed at a shareholder meeting on December 5.
Marijuana Stocks with the Fastest Revenue Growth
Here are the marijuana stocks with the highest year-over-year (YOY) revenue growth for the most recent quarter. Rising sales show that a company’s business is growing and is generating more money that it can use to cover costs, and potentially reinvest in the business or return to shareholders.
|Marijuana Stocks with the Fastest Revenue Growth|
|Price ($)||Market Cap ($B)||Revenue Growth (%)|
|Valens Groworks Corp. (VGW.V)||3.24||0.4||112,800|
|Harvest Health & Recreation Inc. (HARV.CX)||3.38||1.0||86,870|
|iAnthus Capital Holdings Inc. (IAN.CX)||1.88||0.3||7,680|
- Valens GroWorks Corp.: Valens GroWorks is a Canadian biotechnology company that specializes in cannabis processing and formulation, including analytical testing.
- Harvest Health & Recreation Inc.: Harvest Health & Recreation is a medicinal marijuana company specializing in cultivation, dispensaries, and production facilities.
- iAnthus Capital Holdings Inc.: See company description above.
Marijuana Stocks with the Most Momentum
These are the marijuana stocks that had the greatest total return over the past 12 months.
|Marijuana Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Village Farms International Inc. (VFF)||6.30||0.3||46.9|
|Innovative Industrial Properties Inc. (IIPR)||77.97||0.9||46.6|
|Cara Therapeutics Inc. (CARA)||24.45||1.1||31.6|
|S&P 500 (SPX)||N/A||N/A||21.6|
|ETFMG Alternative Harvest ETF (MJ)||N/A||N/A||-40.8|
- Village Farms International Inc.: See company description above.
- Innovative Industrial Properties Inc.: Innovative Industrial Properties owns and leases industrial properties. The company is primarily focused on the acquisition, disposition, construction, development, and management of facilities leased to tenants in the regulated medical marijuana industry. The company has entered into a long-term lease of a Pennsylvania-based property with Green Thumb Industries .
- Cara Therapeutics Inc.: Cara Therapeutics researches, develops, and commercializes pharmaceutical products, including opioid-based products, anesthetic-based drugs, and also cannabis-related products.
Amyris, Inc. "CBD from fermentation delivers consistent purity and higher yields, says Amyris," Accessed Nov. 26, 2019.
iAnthus Capital Holdings Inc. "iAnthus to Nominate Five New Independent Directors,"
Accessed Nov. 26, 2019.
Innovative Industrial Properties, Inc. "Innovative Industrial Properties Acquires Pennsylvania Property and Enters Into Long-Term Lease with Green Thumb Industries (GTI)," Accessed Nov. 26, 2019.