Many industries are continuing to struggle even as the markets have reopened in several geographies following pandemic-led lockdowns. However, cannabis demand continues to be strong amid the pandemic.
As per New Frontier Data, US states, which have legalized cannabis, are seeing an average rise in spending per consumer of 23% since the beginning of this year. And August expenditures per user were 17% higher on an average Y/Y though there was a slight drop from the initial spike in 2Q.
We will discuss how cannabis companies Green Thumb and Hexo are positioned currently and use the TipRanks’ Stock Comparison tool to see which stock offers a better investment opportunity.
Green Thumb Industries (GTBIF)
Chicago-based Green Thumb Industries is a leading US cannabis grower. It has 13 manufacturing facilities and owns licenses for 96 retail locations and operations across 12 US markets. It sells branded cannabis products through its retail cannabis stores –Rise and Essence. Green Thumb is among the few cannabis companies that are generating operating profit.
The company is benefiting from the rising demand for medical and recreational cannabis in the US with its revenue