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 various regions for recreational, medicinal and other uses. The biggest companies include Canopy Growth Corp. (CGC), Cronos Group Inc. (CRON), and Aphria Inc. (APHA). Over the past 12 months, the marijuana industry, as measured by the ETFMG Alternative Harvest ETF (MJ) has substantially underperformed the broader market, plummeting 41.0% compared to the S&P 500's 26.4% gain. All figures in this story are as of January 8, 2020.
We'll take a look at the top 3 marijuana stocks for the first quarter with the best value, the fastest earnings 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|
|Amyris Inc. (AMRS)||3.05||321.8||2.5|
|iAnthus Capital Holdings Inc. (IAN.CX)||1.47||252.4||4.4|
|OrganiGram Holdings Inc. (OGI.TO)||2.13||332.8||4.7|
- Amyris Inc.: Amyris is a biotechnology company that provides bioscience solutions. The company offers products for the health and wellness, clean beauty, and flavor and fragrance markets. Some of its products contain cannabis. Amyris announced at the end of December that it had successfully shipped its first fermentation-derived cannabinoid to its partner, LAVVAN.
- iAnthus Capital Holdings Inc.: iAnthus Capital is a Canada-based holding company that, through its subsidiaries, provides financing and related management and advisory services to licensed operators engaged in the cultivation, manufacturing, and dispensing of cannabis.
- OrganiGram Holdings Inc.: OrganiGram is a Canada-based holding company that, through its subsidiary Organigram Inc., engages in the production and sale of medical marijuana. Specific products include strains, cannabis oils, and vaporizers.
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)||2.51||289.6||112,844.3|
|GW Pharmaceuticals Plc. (GWPH)||104.17||3,116.0||3,659.1|
|iAnthus Capital Holdings Inc. (IAN.CX)||1.47||252.4||2,279.2|
- The Valens Co.: The Valens Company, formerly Valens GroWorks Corp., is a Canada-based cannabis company specializing in processing and formulation. For Q3 2019, the company reported revenue rose 112,844.3% compared to the same quarter a year ago. The company also posted net income of $5.9 million ($4.5 million USD) compared to a loss of $2.3 million ($1.8 million USD) for Q3 2018.
- GW Pharmaceuticals Plc.: GW Pharmaceuticals is a U.K.-based biopharmaceutical company that engages in the research and development of cannabinoid medicines for the treatment of cancer pain, Multiple Sclerosis, and neuropathic pain.
- iAnthus Capital Holdings Inc.: See company description above.
Marijuana Stocks with the Most Momentum
These are the marijuana stocks that had the highest price change the last 12 months.
|Marijuana Stocks with the Most Momentum|
|Price ($)||Market Cap ($M)||12-Month Trailing Price Change (%)|
|Innovative Industrial Properties Inc. (IIPR)||77.02||904.8||49.5|
|Sprott Inc. (SII.TO)||2.29||615.5||19.1|
|Trulieve Cannabis Corp. (TRUL.CX)||10.25||1,120.0||14.1|
|ETFMG Alternative Harvest ETF (MJ)||N/A||N/A||-41.0|
- 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. The company posted YOY revenue growth of 194.3% and YOY EPS growth of 161.9% for Q3 2019.
- Sprott Inc.: Sprott is an 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 posted YOY revenue growth of 50.0% and YOY EPS growth of 100.0% for Q3 2019.
- Trulieve Cannabis Corp.: Trulieve Cannabis is a holding company that, through its subsidiaries, engages in the cultivation, possession, sale, and distribution of medical cannabis.
Yahoo! Finance. "ETFMG Alternative Harvest ETF (MJ) Price Chart," Accessed Jan. 8, 2020.
Yahoo! Finance. "S&P 500 (^GSPC) Price Chart," Accessed Jan. 8, 2020.
Amyris Inc. "Amyris Announces Successful Shipment of First Fermentation Derived Cannabinoid to LAVVAN and Provides Business Updates," Accessed Jan. 9, 2020.
The Valens Co. "CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS: THREE AND NINE MONTH PERIODS ENDED AUGUST 31, 2019," Page 20. Accessed Jan. 9, 2020.
Innovative Industrial Properties Inc. "Form 10-Q for the quarterly period ended September 30, 2019," Page 4. Accessed Jan. 9, 2020.
Sprott Inc. "2019 Third Quarter Report," Page 9. Accessed Jan. 9, 2020.