Sundial vs. Cronos: Which Cannabis Stock is a Better Buy?
StockNews
Published Jul 23, 2021 12:18PM ET
Updated Jul 23, 2021 01:30PM ET
Sundial vs. Cronos: Which Cannabis Stock is a Better Buy?
Sundial (SNDL) and Cronos Group (NASDAQ:CRON) are two beaten-down cannabis stocks with significant potential. However both the companies need to improve profit margins and reduce cash burn in order to gain investors confidence. Which of these two stocks should you invest in right now?.Canadian cannabis stocks have grossly underperformed the broader markets over the past couple of years. Most of them have been grappling with industry-wide issues, that include the slow rollout of retail chains in major Canadian provinces, competition from a thriving black market as well as overvalued acquisitions.
This in turn led to tepid demand for cannabis products, high inventory levels, widening losses, and multi-billion-dollar goodwill write-downs. Further, in order to offset cash burn, cannabis companies have raised equity capital several times, which has diluted shareholder wealth and contributed to their stock decline.
However, the marijuana market in Canada continues to expand and cannabis legalization efforts around the world makes these stocks compelling bets for long-term growth investors. In this article I’m going to analyze two canadian cannabis stocks, Sundial (SNDL) and Cronos (CRON), to see which is the better buy now.
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