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 GW Pharmaceuticals PLC (GWPH). Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically underperformed the broader market, posting a total return of -73.4% compared to -12.1% for the S&P 500 over the past 12 months. These market performance numbers and the statistics in the tables below are as of March 17.
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|
|Aphria Inc. (APHA.TO)||CA$3.03||CA$809.4||1.7|
|Tilray Inc. (TLRY)||3.05||317.4||1.8|
|Aurora Cannabis Inc. (ACB)||0.69||809.1||3.4|
- Aphria Inc.: Aphria is a Canada-based company engaged in the production and sale of medical and recreational cannabis. The company announced in November the election of several new members to the Board of Directors and a number of new appointments and promotions to its executive leadership team.
- Tilray Inc.: Tilray is a pharmaceutical company focused on the development of cannabis-based medicines, drugs, drops, and oil products. The company is headquartered in Canada but serves clients worldwide. Tilray announced in January the appointment of two new exectives. Former Revlon executive Jon Levin was joining the company as Chief Operating Officer (COO), and former Molson Coors and Pharmaca executive Michael Kruteck was joining as Chief Financial Officer (CFO).
- Aurora Cannabis Inc.: Aurora Cannabis is a Canada-based company engaged in the production, distribution, and sale of cannabis products. The company announced in early February that founder and Chief Executive Officer (CEO) Terry Booth will be retiring, to be succeeded by Executive Chairman Michael Singer as interim CEO until a permanent successor is found. Earlier this week, the company announced that Booth was selling his approximately 12.2 million shares of the company in the open market.
Fastest Growing Marijuana Stocks
These are the marijuana stocks with the highest year over year (YOY) sales growth for the most recent quarter. Rising sales show that a company’s business is growing. This is often used to measure growth of young companies that have not yet reached profitability.
|Fastest Growing Marijuana Stocks|
|Price ($)||Market Cap ($M)||Revenue Growth (%)|
|Aphria Inc. (APHA.TO)||CA$3.03||CA$809.4||456.6|
|Green Thumb Industries Inc. (GTII)||CA$5.65||CA$1,159||300.0|
|Innovative Industrial Properties Inc. (IIPR)||56.89||969.2||269.5|
- Aphria Inc.: See above for company description.
- Green Thumb Industries Inc.: Green Thumb Industries operates as a pharmaceutical company that manufactures and distributes medical marijuana and cannabis products.
- Innovative Industrial Properties Inc.: Innovative Industrial Properties is a real estate company that engages in the acquisition, ownership and management of industrial properties. The company's real estate investments consist primarily of properties used for the cultivation and production of medical-use cannabis.
Marijuana Stocks with the Most Momentum
These are the marijuana stocks that had the highest total return over the last 12 months. All 3 of the stocks listed below had negative total returns over the past year but they are the stocks within the marijuana sector whose returns have been the least negative.
|Marijuana Stocks with the Most Momentum|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|Sprott Inc. (SII.TO)||CA$2.21||CA$539.6||-26.3|
|Innovative Industrial Properties Inc. (IIPR)||56.89||969.2||-26.8|
|Curaleaf Holdings Inc. (CURA)||CA$4.80||CA$2,203||-43.7|
|S&P 500 (SPY)||N/A||N/A||-12.1|
|ETFMG Alternative Harvest ETF (MJ)||N/A||N/A||-73.4|
- 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 in the cannabis industry. The company announced in January that it had completed its acquisition of Tocqueville Asset Management LP gold strategies for total consideration of up to $50 million, a transaction that adds approximately $1.8 billion to the company's total assets under management (AUM).
- Innovative Industrial Properties Inc.: See above for company description.
- Curaleaf Holdings Inc.: Curaleaf Holdings is a Canada-based holding company that, through its subsidiaries, engages in the production and distribution of cannabis products. The company announced in December the appointment of Joe Bayern to the role of President and Tracy Brady to the role of Vice President, Corporate Communications, expanding the executive leadership team as the company continues to grow.
YCharts. "Financial Data," Accessed Mar. 17, 2020.
Aphria Inc. "Aphria Inc. Announces Election of Board of Directors and Executive Appointments and Promotions," Accessed Mar. 17, 2020.
Tilray Inc. "Tilray® Expands Global Leadership Team with New COO and CFO," Accessed Mar. 17, 2020.
Aurora Cannabis Inc. "Aurora Cannabis Announces CEO Retirement and Succession, Board of Directors Expansion, and Business Transformation Plan," Accessed Mar. 17, 2020.
Aurora Cannabis Inc. "Aurora Cannabis Announces Share Sale by Founder Terry Booth," Accessed Mar. 17, 2020.
Sprott Inc. "Sprott Completes Acquisition of Tocqueville Gold Strategies and Provides Preliminary AUM Update," Accessed Mar. 17, 2020.
Curaleaf Holdings Inc. "Curaleaf Appoints Joe Bayern President, Curaleaf Holdings, Inc., Expanding Executive Leadership Team as Company Continues to Grow," Accessed Mar. 17, 2020.
Curaleaf Holdings Inc. "Curaleaf Appoints Tracy Brady Vice President, Corporate Communications at Curaleaf Holdings, Inc.," Accessed Mar. 17, 2020.