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 Tilray Inc. (TLRY). Many big marijuana companies have continued to post sizable net losses as they focus on investments needed to speed up revenue growth. 37 U.S. states now permit the use of marijuana in some form.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have vastly underperformed the broader market. MJ has provided a total return of -68.5% over the past 12 months, well below the Russell 1000 Index’s total return of -10.0%. These market performance numbers and all statistics in the tables below are as of June 28, 2022.
Here are the top five marijuana stocks with the best value, the fastest growth, and the best performance.
These are the marijuana stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in the early stages of development or industries suffering from major shocks, this can be substituted as a rough measure of a business’s value. A business with higher sales could eventually produce more profit when it achieves (or returns to) profitability. The P/S ratio shows how much you’re paying for the stock for each dollar of sales generated.
| Best Value Marijuana Stocks | |||
|---|---|---|---|
| Price ($) | Market Cap ($B) | 12-Month Trailing P/S Ratio | |
| Ayr Wellness Inc. (AYR.A.CX) | CA$6.40 | CA$0.4 | 0.8 |
| Cresco Labs Inc. (CL.CX) | CA$3.40 | CA$1.0 | 0.9 |
| Jushi Holdings Inc. (JUSH.CX) | CA$1.97 | CA$0.4 | 1.4 |
| Aurora Cannabis Inc. (ACB) | 1.49 | 0.4 | 1.7 |
| Trulieve Cannabis Corp. (TRUL.CX) | CA$16.46 | CA$3.0 | 2.0 |
Source: YCharts
- Ayr Wellness Inc.: Ayr Wellness is a cannabis company involved in the cultivation, manufacturing, and dispensing of cannabis and cannabis-derived products. The company’s product portfolio includes flowers, tinctures, edibles, and vape products under brands including Kynd, Origyn, Stix Preroll, Levia, and Road Tripper. Ayr Wellness also trades OTC in the U.S. under the ticker AYRWF. The company reported Q1 2022 results on May 26. The net loss attributable to Ayr narrowed year-over-year (YOY) as revenue nearly doubled. The company said that profits were affected by heavy investments in projects that hurt short-term operating margins.
- Cresco Labs Inc.: Cresco Labs is a consumer-packaged cannabis products company involved in growing, manufacturing, and distribution. The company operates in 10 states, including more than 70 total production facilities and dispensaries. Its brands include Cresco, Remedi, High Supply, Wonder Wellness Co., Mindy’s, Good News, Sunnyside, and FloraCal Farms. Cresco Labs’ stock also trades OTC in the U.S. under the ticker CRLBF.
- Jushi Holdings Inc.: Jushi Holdings is a holding company focused on branded cannabis and hemp-based assets. The company is engaged in retail, distribution, cultivation, and processing operations. Its brands include: The Bank, focused on plant genetics and cultivation; The Lab, specializing in vape products and concentrates; Nira+, a producer of medicinal THC products; Sèche, which offers various branded ground and flower cannabis products; and Tasteology, a provider of THC-infused products. Jushi also trades OTC in the U.S. under the ticker JUSHF. Jushi announced on June 29 that The Lab debuted its first line of concentrates made using hydrocarbon extraction. The company’s new line of hydrocarbon extract products is rich in THC and cannabinoids, containing about 90% of the plant’s original cannabinoids. The cannabis extract market was an estimated $9.2 billion in 2021.
- Aurora Cannabis Inc.: Aurora Cannabis is a Canada-based company specializing in production, distribution, and sales of medical cannabis products. Its brands include Aurora, Aurora Drift, Daily Special, MedReleaf, Whistler, and more. The company’s growth strategy targets medical cannabis markets across the globe as well as the U.S. hemp-derived CBD market and the Canadian recreational market.
- Trulieve Cannabis Corp.: Trulieve Cannabis is a multi-state, vertically integrated cannabis company. Its operations include cultivation, manufacturing, retail, and logistics. Its brands include Cultivar Connection, Momenta, Muse, Sweet Talk, and more. Trulieve also trades in OTC markets under the symbol TCNNF. The company’s newest medical marijuana dispensary opened in New Port Richey, Florida on June 16.
These are the marijuana stocks with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales can help investors identify companies that are able to grow revenue organically or through other means and find growing companies that have not yet reached profitability. In addition, accounting factors that may not reflect the overall strength of the business can significantly influence earnings per share. However, sales growth can also be potentially misleading about the strength of a business because growing sales for money-losing businesses can be harmful if the companies have no plan to reach profitability.
| Fastest-Growing Marijuana Stocks | |||
|---|---|---|---|
| Price ($) | Market Cap ($B) | Revenue Growth (%) | |
| OrganiGram Holdings Inc. (OGI) | 1.01 | 0.3 | 118.0 |
| Cronos Group Inc. (CRON) | 3.04 | 1.1 | 98.5 |
| Ayr Wellness Inc. (AYR.A.CX) | CA$6.40 | CA$0.4 | 90.6 |
| Sundial Growers Inc. (SNDL) | 0.37 | 0.9 | 77.9 |
| Verano Holdings Corp. (VRNO.CX) | CA$8.33 | CA$2.5 | 67.4 |
Source: YCharts
- OrganiGram Holdings Inc.: Organigram Holdings is a Canada-based producer of medical and recreational cannabis. Its subsidiaries include Organigram Inc., Laurentian Organic Inc., and The Edibles and Infusions Corp., and its brands include Edison Cannabis Co., SHRED, and monjour, among others. Organigram announced on June 24 it had reached a proposed settlement related to a class action lawsuit pertaining to medical cannabis that was voluntarily recalled in 2016 and 2017. Per the proposal, Organigram will pay an aggregate of $2,310,000. The Supreme Court of Nova Scotia will hold a hearing to determine whether to approve the proposal on Aug. 31, 2022.
- Cronos Group Inc.: Cronos Group is a Canada-based cannabis company focused on advancing cannabis research, technology, and product development. Its international brand portfolio includes Spinach, Happy Dance, and PEACE+. On June 21, the company announced that it had achieved the third productivity milestone in its ongoing partnership with cell programming company Ginkgo Bioworks Holdings Inc. (DNA). The two companies are working to produce eight cultured cannabinoids. The recent productivity milestone relates to tetrahydrocannabivarin (THCV), a cannabinoid. THCV is believed to have the potential to reduce THC’s appetite-enhancing properties.
- Ayr Wellness Inc.: See above for company description.
- Sundial Growers Inc.: Sundial Growers is a Canada-based cannabis producer. The company operates cultivation and processing facilities, retail stores, and sells alcoholic beverages. Its cannabis brands include Sundial, Top Leaf, Palmetto, and Grasslands. Sundial reported Q1 2022 earnings on May 16. Net losses dramatically narrowed as revenue posted strong growth YOY. Improvements in the company’s cost structure and increased distribution of branded products helped to drive performance.
- Verano Holdings Corp.: Verano Holdings is a vertically integrated, multi-state cannabis operator. The company produces a wide range of medical and adult-use cannabis products. It owns and operates 12 cultivation and manufacturing facilities and owns 95 dispensaries in a number of states throughout the U.S. The company’s stock also trades OTC in the U.S. under the ticker VRNOF.
These are the marijuana stocks that had the smallest declines in total return over the past 12 months out of the companies we looked at.
| Marijuana Stocks With the Best Performance | |||
|---|---|---|---|
| Price ($) | Market Cap ($B) | 12-Month Trailing Total Return (%) | |
| Innovative Industrial Properties Inc. (IIPR) | 113.75 | 3.2 | -40.2 |
| 4Front Ventures Corp. (FFNT.CX) | CA$0.75 | CA$0.5 | -52.2 |
| Verano Holdings Corp. (VRNO.CX) | CA$8.33 | CA$2.5 | -59.9 |
| Sundial Growers Inc. (SNDL) | 0.37 | 0.9 | -62.5 |
| OrganiGram Holdings Inc. (OGI.TO) | CA$1.31 | CA$0.4 | -63.8 |
| Russell 1000 | N/A | N/A | -10.0 |
| ETFMG Alternative Harvest ETF (MJ) | N/A | N/A | -68.5 |
Source: YCharts
- Innovative Industrial Properties Inc.: Innovative Industrial Properties is a real estate investment trust (REIT) that engages in the acquisition, disposition, development, and management of industrial facilities leased to tenants in the regulated medical cannabis industry. The company’s portfolio consists of specialized industrial and greenhouse buildings leased to state-licensed, medical-use cannabis cultivators across the U.S. On June 15, it declared a Q2 2022 dividend of $1.75 per share of common stock, as well as a dividend of $0.5625 per share of 9.00% Series A Cumulative Redeemable Preferred Stock. Both dividends are payable July 15 to shareholders as of June 30, 2022.
- 4Front Ventures Corp.: 4Front Ventures is a cannabis operator and retailer operating across multiple states. It owns, operates, or manages cultivation and manufacturing properties in five states and employs over 600. Its stores attracted more than one million unique customers in 2021. 4Front also trades OTC under the symbol FFNTF. On June 9, the company announced the appointments of several executives and board members, including Keith Adams as chief financial officer (CFO). Adams was previously CFO of LPF Holdco, LLC, a privately held, vertically integrated cannabis company.
- Verano Holdings Corp.: See above for company description.
- Sundial Growers Inc.: See above for company description.
- OrganiGram Holdings Inc.: See above for company description. Note that the figures in the table above represent shares of OrganiGram Holdings which trade on the Toronto Stock Exchange.
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