Aurora Cannabis Inc (TSX: ACB) (NYSE: ACB) has long been one of Canada's most popular weed stocks. Other only to Canopy Growth in terms of revenue and market value, there is a large producer with a lot of weight to throw around. In the last quarter, the company increased its revenue by 305% ̵
However, ACB faces some issues that can make it a bad bet going forward. In addition to being one of the most expensive marijuana shares by sales and book value, there is also a growing loss from operations. Granted, most planters are in the same boat. But for Aurora, the combination of a nosebleed valuation and mounting error is difficult to ignore.
Fortunately, if you want to invest in marijuana, there is another option out there. A former small player who is growing fast and is now within striking distance from Aurora's revenue. This company grew its sales by a blowing 617% year after year in the last quarter, and the acquisitions are beginning to pay off.
Company name? Aphria Inc (TSX: APHA).
Aphria is a marijuana producer with a strong focus on the medical side of the cannabis industry. Unlike Canopy and Aurora, however, recreational cannabis has not gone too well, with a 35% decline in recreational sales in its last quarter. But what the company missed on recreation, it was more than done up in medical: The company saw a 64% increase in medical cannabis produced in the nine months of February 28.
In addition, the company provided approx. $ 50 Million in New Distribution Revenue from the subsidiaries CC Pharma and ABH, which serve to demonstrate that Aphria's acquisition strategy actually pays off, as opposed to the demands of short-term research reports saying the company spent immense amounts on almost nothing.
One of the cheapest wind farms
One of the most interesting things about Aphria is that it is one of the fastest growing weeds, although it is one of the cheapest. To a degree, this is to be expected: marijuana is a hype-driven industry, and Aphria only gets that kind of pressure like Canopy or Aurora. However, it's still amazing how cheap this stock is compared to any of its peers.
In an industry where the price for sale in the high 60's is common, Aphria trades about 19 times sales and only 1.3 times book value. Given that the price-to-sale ratio is high for most stocks; However, it is low compared to other marijuana shares.
In addition, Aphria has managed to increase profits in the last quarter, a milestone that major competitors were slow to reach. These and other factors make Aphria one of the most reliable closure stocks out there.
You may miss one of the greatest opportunities in Canadian investment history …
Marijuana was legalized over Canada on October 17, and a little-known Canadian company that just unlocked what some experts might think be the key to taking advantage of the upcoming marijuana boom.
Besides making important partnerships with Facebook and Amazon, they have just made a game-changing deal with the Ontario government.
A green-rooted Canadian company has already already introduced this technology to the market – therefore legendary Canadian investor Iain Butler believes they have a leg on Amazon in this once in a generation tech race.
This is the company we believe you should strongly consider in your portfolio if you want to position yourself wisely for the upcoming marijuana boom.
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Fool contributor Andrew Button has no position in any of the aforementioned shares.