Trulieve Was The Better Choice Than Canopy And Tilray, And Why This Will Remain The Case

Thesis

About a year ago, we featured a public article in which we called Trulieve Cannabis (OTCQX:TCNNF) a much better investment than Canopy Growth (NYSE:CGC) and Tilray (TLRY). Following up about eleven months later, we see that our thesis played out well. The factors that made Trulieve Cannabis look better than its peers remain in place, and it still looks like the most favorable choice.

Source: Stock Rover

Trulieve Cannabis has a very strong overall rating at Stock Rover, which includes solid grades for its financial strength (balance sheet, liquidity, etc.), efficiency (margins, returns on capital), and growth. Canopy Growth’s rating is somewhat neutral, whereas Tilray has very weak scores overall.

Our Original Thesis

About eleven months ago, we published an article in which we called Trulieve a more attractive investment compared to Canopy Growth and Tilray. This was based on our belief that Florida-based Trulieve would continue to benefit from above-average growth rates and strong margins compared to its peers. We also thought that the market would eventually reward Trulieve for these above-average fundamentals and reward it via multiple expansion.

Looking back now, we see that this thesis has played out relatively well so far:

Data by YCharts

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