Categories Cannabis, Health Care

The question every pot investor asks himself – Aurora Cannabis or Hexo?

If you have already missed the train, there is no denying the fact that NOW is the time to enter the lucrative cannabis market. Despite high volatility, pot stocks have paid off to its investors, outperforming other key growth industries.

For most investors, the dilemma is not in deciding whether to enter the marijuana market that is worth $150-billion annually, but is in choosing the right stocks that have the potential to reap its benefits.

Image by Rex Medlen from Pixabay

On the forefront are two amazing stocks – Aurora Cannabis (NYSE: ACB) and Hexo (NYSEAMERICAN: HEXO) – both of which have been on an uptrend this year.

So which one should you opt for? Well, both, if that is the third option. As of now, both the stocks are looking rock-solid, ready to take on the broader global markets once pot gets legalized in more regions.

 

aurora cannabis vs hexo corp revenue comparison

Last month, research firm Cowen had named Aurora Cannabis as its top stock pick for the marijuana industry, replacing Canopy Growth (NYSE: CGC). Similarly, earlier this week, Bank of America initiated marijuana coverage with Hexo as its most preferred stock. The backing of these research firms elicits a lot of investor confidence in the stocks.

But what if you need to choose?

As you may already know, comparing Hexo to Aurora is hardly fair, given the difference in their sizes. Aurora is almost five times the size of Hexo in terms of market cap. Aurora also boasts of annualized marijuana production capacity of 150,000 kilos, and is ramping up its facility to increase this capacity. This possibly gives Aurora an edge over the smaller firms, including Hexo, to take on new markets and gain an early-mover status.

aurora cannabis vs Hexo group bottom line comparison

 

Hexo, meanwhile, produced less than 5,000 kilos of marijuana in the last reported quarter. However, the company has embraced Aurora’s path of consolidation to boost production. Last month, in a $263-million deal, the  Gatineau, Canada-based firm acquired premium cannabis producer Newstrike.

But matching up to Aurora could turn out to be a herculean task for Hexo, which will need to find funders who are ready to shell out on its new facilities and acquisition plans.

READ: THE CANNABIS-BEVERAGE INDUSTRY IS SOMETHING YOU DON’T WANT TO MISS THIS YEAR

Sales vs. Profitability

Sales is only one aspect of a business; you also need to consider profitability. During the last reported quarter, Aurora Cannabis reported a massive loss of C$238 million, compared to a profit of C$7.7 million in the year-ago quarter. During the same quarter, Hexo also lost over C$4 million, as both companies grapple to peg their rising expenses.

Both firms currently have similar gross margins at around 52%, so with better optimization of expenses, Hexo may stand a chance to surpass the bigger rival in the road to profitability. Yet, at the end of the day, a better valuation, bigger infrastructure, and higher market share make Aurora a safer bet over Hexo.

 

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Comments

  1. Pingback: Beverly Bultron
  2. Pingback: Academic programs
  3. Pingback: MBA degree Cairo
  4. Pingback: Simulation Models
  5. Pingback: Future University
  6. Pingback: Student Grievances
  7. Pingback: digital world
  8. Pingback: Banking Internship
  9. Pingback: Dental Courses
  10. Pingback: fue
  11. Pingback: العقاقير
  12. Pingback: challenge sportif
  13. Pingback: neuropure
  14. Pingback: Fiverr Earn
  15. Pingback: Fiverr Earn
  16. Pingback: Fiverr Earn
  17. Pingback: Fiverr Earn
  18. Pingback: fiverrearn.com
  19. Pingback: fiverrearn.com
  20. Pingback: fiverrearn.com
  21. Pingback: fiverrearn.com
  22. Pingback: fiverrearn.com
  23. Pingback: livpure mediprime
  24. Pingback: clima para hoy
  25. Pingback: fiverrearn.com
  26. Pingback: jute rugs
  27. Pingback: micro frenchie
  28. Pingback: brindle frenchie
  29. Pingback: future university
  30. Pingback: fue
  31. Pingback: Grand piano moving
  32. Pingback: FUE
  33. Pingback: FUE
  34. Pingback: Furniture assembly
  35. Pingback: Efficient moving
  36. Pingback: Safe moving
  37. Pingback: where is bali
  38. Pingback: Classic Books 500
  39. Pingback: FiverrEarn
  40. Pingback: FiverrEarn
  41. Pingback: Fiverr.Com
  42. Pingback: FiverrEarn
  43. Pingback: Speaker
  44. Pingback: FiverrEarn
  45. Pingback: Becoming Porn star
  46. Pingback: partners
  47. Pingback: Economics
  48. Pingback: Betting tips
  49. Pingback: FiverrEarn
  50. Pingback: FiverrEarn
  51. Pingback: FiverrEarn
  52. Pingback: FiverrEarn
  53. Pingback: live sex cams
  54. Pingback: live sex cams
  55. Pingback: FiverrEarn
  56. Pingback: FiverrEarn
  57. Pingback: FiverrEarn
  58. Pingback: FiverrEarn
  59. Pingback: FiverrEarn
  60. Pingback: FiverrEarn
  61. Pingback: FiverrEarn
  62. Pingback: FiverrEarn
  63. Pingback: FiverrEarn
  64. Pingback: FiverrEarn
  65. Pingback: web design
  66. Pingback: pearl
  67. Pingback: FiverrEarn
  68. Pingback: FiverrEarn
  69. Pingback: cheap sex cams
  70. Pingback: canine probiotics
  71. Pingback: live sex cams
  72. Pingback: live sex cams
  73. Pingback: frt trigger
  74. Pingback: 늑대닷컴
  75. Pingback: nangs sydney
  76. Pingback: allgame
  77. Pingback: 918kiss
  78. Pingback: หวย24
  79. Pingback: Best eye cream
  80. Pingback: pg slot
  81. Pingback: regles 421
  82. Pingback: cybersécurité
  83. Pingback: catskills hotel
  84. Pingback: SaaS Law Firm
  85. Pingback: itsMasum.Com
  86. Pingback: nangs sydney
Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top