Better Buy: Canopy Growth vs. Cronos Group
Is the U.S. going to legalize marijuana in the near future? I wouldn't count on it because legislation usually takes a long time, especially on such a large scale. But, if it does happen, it could be years away.
But that doesn't mean it's too early to invest in pot stocks that could benefit from legalization. The key is being patient and finding a business with strong enough financials and resources to hang on for the long run. Two stocks of well-funded companies in good positions to still be around in a few years are Canopy Growth (NASDAQ: CGC) and Cronos Group (NASDAQ: CRON). But which of these cannabis producers is the better buy right now?
Canopy Growth has a healthy balance sheet thanks to the $4 billion investment that brewer Constellation Brands made in the cannabis company in 2018. Even though the company has been burning through cash since then, its financial position remains strong. As of the end of June, Canopy reported cash and short-term investments totaling 1.2 billion Canadian dollars ($868 million).
Source Fool.com
