Which Marijuana Stock has more potential, Aurora Cannabis or Cronos Group?
Aurora Cannabis and Cronos Group, two leading cannabis stocks have increased substantially within the past year. Many stocks may double or triple in value in 12 months, but these share evaluations have quadrupled. Aurora and Cronos stock has surpassed expectation and rose 300% and 200% respectively.
Aurora Cannabis growth and change in the market over the year.
Aurora Cannabis maintained its reputation as one of Canada’s top marijuana producers. Recently the company upped its game by competing against Canopy Growth for the largest market share in the industry.
Aurora’s recent steam upwards originated from its awaited acquisition of CanniMed Therapeutics. CanniMed presented Aurora a fast solution on how to expand its size and market share.
Canada is scheduled to legalize recreational marijuana within this year, the companies with the most market share are expected to control most of the capital flow. Statistically, at the end of 2017, Aurora’s production was at 240,000 kilograms per year. With CanniMed adding 19,000 kilograms to that total.
In addition, Aurora has begun to expand into the retail market sales of cannabis. The company has streamed a large sum of money into the Liquor Stores N.A. Ltd, which controls 231 liquor establishments within Canada. The expectation is to convert many of these stores into cannabis stores, which will then sell products from Aurora, in addition to any new stores to be opened.
Impressively, Aurora has not only focused on the Canadian market but also Germany’s market where it doubled its sales of medical marijuana. Aurora has a foothold in the international market, which is growing substantial despite the newness of it.
Cronos Group substantial sales performance.
Although Aurora maybe the high flyer at this time with the most momentum, Cronos has presented an award-winning performance with share growth of 600% over 2017.
Cronos has also stepped up its game and is preparing for the legalization of recreational marijuana. They have launched a program designed to sustain two recreational marijuana lines. The lines will fall under the program, Original BC, and will provide for mainstream and premium markets.
In comparison to Aurora, Cronos has only managed to produce 7,000 kilograms annually. It is anticipating great growth in the near future. With an expansion of the Peace Natural facility in Ontario and an expected 40,000 kilograms of production expected to occur in 2019. The Peace Natural facility is expected to be major.
“the largest purpose-built indoor cannabis production facility in the world.”
Cronos, like Aurora, has begun focusing on the international market development. Joining with Israeli agricultural collective settlement Gan Shmuel is just the beginning. Likewise, in Germany, a partnership with Pohl-Boskamp has occurred to exclusively provide medical marijuana for the German market. Extensively, they have also, formed a similar agreement with Australia, New Zealand, and Southeast Asia.
Which company is the better investment?
If you are looking for an established player with secured contracts around the globe, Aurora is your choice. It has a larger production capacity than Cronos, and is ahead of most players in the game.
If you are looking for a stock with extreme growth potential and a lower price, Cronos is your bet. They have established unique deals with First Nations Communities across Canada. There is also potential for a buyout in future months.