Which Marijuana Stock Is a Better Choice? By StockNews

HEXO (NASDAQ:) and Tilray (NASDAQ:) are two Canadian cannabis heavyweights that may outperform the broader markets in the future. But first these companies need to shore up their balance sheet, reduce cash burn and generate a positive cash flow on a consistent basis to gain investor confidence. Taking a look at both companies, let’s see which is the better company to invest in right now.The enthusiasm surrounding Canadian marijuana companies back in October 2018 has disappeared. Investors were first concerned over their steep valuations and negative profit margins. More recently, investors have been disappointed by the slow roll-out of retail stores in major Canadian provinces, competition from a thriving black market, overvalued acquisitions, high inventory levels and shareholder dilution which continued to impact the financials of pot producers.

However, the significant pullback in Canadian cannabis stocks also provides long-term investors an opportunity to buy the dip in stocks in a high growth industry. According to Grand View Research, the legal cannabis market will be worth more than $70 billion by 2028.

Today I will analyze two Canadian cannabis companies: HEXO (HEXO) and Tilray (TLRY). Let’s see which stock is a better investment right now.

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