© Reuters. Sundial vs. Green Thumb: Which Cannabis Stock is a Better Buy?
While the U.S. cannabis stocks have crushed the broader markets in the last two years, their counterparts north of the border have grossly underperformed. Does this mean Canadian stocks such as Sundial (SNDL) are trading at an attractive valuation or are U.S. stocks such as Green Thumb (GTBIF (OTC:)) a better buy?.Canadian cannabis stocks have grossly underperformed the markets for the past two and a half years. However, U.S.-based multi-state operators have experienced impressive gains.
Though marijuana is still illegal at the federal level in the U.S., several states have legalized recreational cannabis in the last few months, and a majority of the regions already allow medical marijuana products. The cannabis market is expectedly much larger in the U.S. compared to Canada. Further, U.S. cannabis producers are benefiting from economies of scale and are racing towards profitability while Canadian companies are grappling with massive losses and rising inventory levels.
Today I’ll analyze two such cannabis producers, Sundial (SNDL) and Green Thumb (GTBIF), to see which is a better stock right now.
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