These 2 Under-the-Radar Cannabis Companies Are the Most Profitable in the Industry

The U.S. cannabis industry is positively booming, yet net profits are still difficult to come by for many U.S. multistate operators (MSOs). That's because federal prohibitions lay onerous borrowing costs and taxes at the feet of U.S. cannabis companies. Given the difficulties of generating cash flow, companies with higher operating profitability will be in much better position to capitalize on growth opportunities than their competitors.

TerrAscend is a mid-tier MSO that's bigger than most private U.S. cannabis operators, yet still smaller than the public industry leaders. Not to be outdone, newly public Verano also reported earnings last week. Despite TerrAscend's second-tier status in terms of overall size, and even though Verano is perhaps less well known since it's been public for only a few months, both are now leaders on one key metric: EBITDA profit margin.

Image source: Getty Images.

Continue reading

Source Fool.com