Better Buy: OrganiGram Holdings vs. Canopy Growth

Comparing Canopy Growth (NYSE: CGC) against OrganiGram Holdings (NASDAQ: OGI) is a bit of a David vs. Goliath match-up. The former is the industry leader. The latter is still a fairly small player by comparison, as its revenue over the past 12 months would fall well short of what its counterpart generated in just its most recent quarter. OrganiGram's market cap is about $280 million U.S., meaning Canopy Growth is more than 20 times its size. However, one can argue that the smaller company may have much more growth potential left. Let's take a look to see if that's the case, and if OrganiGram could be an underrated buy.

The name of the game in the cannabis industry is growth, and that's one area where OrganiGram hasn't been doing so well lately. The company is coming off a brutal second-quarter performance where it didn't generate any growth and its losses only got bigger.

The company did see a quarter-over-quarter increase of 2.96 million Canadian dollars in its adult-use sales, a 19% improvement from the first quarter. But wholesale sales to licensed producers more than offset that, falling by CA$3.65 million, a 40% drop from the company's Q1 results.

Source Fool.com