The Cannabis & Medical Marijuana industry is growing up with widespread legalization surging through the USA. We take a look into the largest, well-established, and legitimate companies that are pulling in the profits.
The Fastest Growing Publicly Traded Marijuana Companies
|Ticker||Company||Revenue Growth 1-Year||EPS % Change 1 Year|
|GWPH||GW Pharma Plc||661%||111%|
|CRBP||Corbus Pharma Holding, Inc||525%||7%|
|IIPR||Corbus Pharma Holding, Inc||212%||147%|
|CRON||Canopy Growth Corporation||126%||1485%|
|ACB||Aurora Cannabis, Inc||81%||-976%|
|CGC||Canopy Growth Corporation||77%||-5%|
|CARA||Cara Therapeutics, Inc||32%||-21%|
Fast Growth Cannabis Stocks List – Fundamental Stock Scan
Top 7 Best Publicly Traded Marijuana Companies
GW Pharma Plc: Medical Research
UK based GW Pharmaceuticals took a significant step forward in June 2018 when the FDA approved its drug derived from an active marijuana ingredient. Epidiolex has been approved for the treatment of seizures associated with two rare and severe forms of epilepsy, Lennox-Gastaut syndrome, and Dravet syndrome. The company is listed on Nasdaq and is a substantial corporation with a market capitalization of $4B.
Interestingly it has a very low institutional ownership of only 7% and a low debt to equity ratio of 0.8. On the other hand, it seems to be running a loss at the moment, losing $8M in earnings this year compares to $178 million in 2018. However, with a revenue growth rate of 661% and Earnings per Share for the last four quarters at 111%, this could be a great stock for the future.
Corbus Pharma Holding, Inc: Medical Research
Corbus Pharmaceuticals Holdings, Inc. is a clinical-stage pharmaceutical company focused on developing and marketing of medicines to treat inflammatory and fibrotic diseases. The company’s big bet is Lenabasum currently being evaluated in dermatomyositis, systemic sclerosis, cystic fibrosis, and systemic lupus erythematosus.
Corbus has a market capitalization of $454M, and current institutional ownership of 49%, meaning that big investors see a lot of potential here.
The company is not yet making a profit, but EPS is up 7% YOY. But revenue growth for the last 12 months was 525%, and if it makes the breakthroughs in its treatments, it will be great for patients and investors alike.
Innovative Industrial Properties, Inc: REIT
If you are interested in investing in marijuana-related properties, then this REIT could be for you as it is a medical marijuana Real Estate Investment Trust. In the last year, it has expanded from 5 to 13 properties across the USA from California to New York.
The revenue growth rate for the last four quarters is 212%, nearly double that of one year ago. It is also one of the very few Cannabis-related stocks to actually offer a dividend, predicted to be 1.6% this year. Add to that an EPS increase of 147%, and you might have an interesting investment.
Cronos Group, Inc: Medical Marijuana Cultivator
The very first cannabis company to float on the NASDAQ is Cronos Group. Based in Canada, Chronos Group grows and cultivates medical marijuana. The company is more mature than most and also has offices in Germany, Israel, and Australia.
Chronos has a substantial market capitalization of $2.3B and relatively low insider ownership of 14%, which means there still could be an opportunity here. With the share price at $6 and the price earnings ratio (PE) at 2.2, this could be an undervalued cannabis stock.
Aurora Cannabis, Inc: Plant Grower
Aurora Cannabis is also based in Canada but is half the size in market capitalization compared to Chronos Group being valued at $998M. Aurora has nine offices and growing plants in Canada and a further two farms in Denmark and is expected to produce over half a million kilos of medical marijuana this year.
Aurora is the second-largest cultivator of medical marijuana, and it has experienced an 81% revenue growth over the last 12 months. It has a high debt to equity ratio of 13, and a PE Ratio of -1, so it is not making a profit yet, but that can be normal in high growth environments.
Canopy Growth Corporation: Medical Marijuana Cultivator
The behemoth of growers is Canada’s Canopy Growth Corp, listed on the NYSE. It is clearly the largest publicly traded marijuana company. Canopy grows not only medical weed but also retail consumer pot. Tweed is one of their most successful brands that is associated with and marketed by the rapper Snoop Dogg.
For a company with a large market capitalization of $6.3B, Canopy knows how to grow weed but also revenues and market share. With 12-month revenue growth of 77%, it is heading in the right direction, alas the EPS for the last 12 months is -5%.
Cara Therapeutics, Inc: Medical Marijuana Research
Cara is a biotechnology company that develops drugs for the treatment of, amongst other things, acute and long-term chronic pain. It works on solutions that include opioids as also cannabinoid drugs.
Cara has a market capitalization of $768M and is listed on the Nasdaq. The institutional ownership of stock is incredibly high for a pot stock with 69% institutional ownership; this means it is considered a legitimate investment by financial institutions.
It is not yet making a profit, but it did experience a 32%+ revenue increase for the last 12 months.
How To Buy Publicly Traded Cannabis Stocks
Trading fees can eat up your profits with stocks. For instance, E-Trade charges a $4.95 fee for every transaction. Hence, the cost of trades could exceed the value of the marijuana stocks. Thus, you should try to find a low-fee brokerage if you plan to trade high volumes of stocks.
Firstrade, our review winning broker, offers free stock trading ($0 Commissions) and covers both the over the counter (OTC) and Pink Sheets Markets. Interactive Brokers are also a great broker and allow very low cost ($1 per trade) trades.
[Related Article: 10 Best Discount Stock Brokers]
Summary: 7 Publicly Listed Marijuana Companies & How To Buy Them.
As you can see, the cannabis business is still in the fledgling stage and is set to experience high growth, providing the political landscape and attitudes towards marijuana do not change.
Which company will you invest in? Let us know in the comments section below.