A Guide to the Top 23 Marijuana Companies Right Now
The cannabis market is taking off and marijuana companies are along for the ride.
Whether you believe in the healing powers of cannabis or think it is just a passing trend, there is no denying that the marijuana market is very real and growing at an extremely fast rate. Last year alone the global cannabis market reached $13.8 billion and expectations are that it might go as high as $66.3 billion by the end of 2025.
If these numbers don’t impress you, take a look at some of the facts and figures on the top marijuana enterprises and judge for yourself.
Marijuana Companies 101
To make a savvy investment, there are first a few things one must know about the cannabis business.
What Kind of Players Are Involved in the Marijuana Industry?
There are three kinds of weed stock:
- Growers, i.e. companies that grow marijuana, and produce cannabis products.
- Supply providers, which provide products and services required for the cultivation of marijuana such as fertilizers, lighting systems, packaging, and management solutions.
- Biotech companies. This category covers cannabis companies using cannabinoids, the chemical components found in marijuana, to develop prescription drugs.
- Marijuana distributors that connect the product to dispensaries.
- Marijuana retailers, or companies that put cannabis products in the hands of end-consumers.
- Cannabis royalty streaming. Operating in a niche market, these companies do not grow or produce weed. They actually finance marijuana growers in exchange for a royalty percentage of the company.
What Are the Risks of Investing in Weed Companies?
All investments come at a risk, and the cannabis industry is no exception.
- Inflated prices. Due to the increased interest in cannabis, some companies have seen a growth in weed stocks just by announcing a cannabis venture, which creates an unrealistic view of just how profitable pot stocks actually are.
- Marijuana is a commodity. Just like other agricultural products, marijuana growth is subject to weather conditions and other factors that affect the health and quality of the crop.
- Dilution. Demand for cannabis is growing and pot companies have to rise to the challenge by launching new products or opening new facilities, which comes at a hefty price. Issuing more shares to fund new operations, also known as dilution, reduces the stake of existing shareholders in the company, thus decreasing the value of the investment.
- Legal risks. Currently, marijuana is not legal in all US states or on the federal level. This means that US marijuana companies must adhere to the rules and regulations of the state in which they operate that vary from jurisdiction to jurisdiction.
What Are the Benefits of Putting Your Money in Marijuana Stocks?
In spite of the stigma still associated with marijuana use, there’s no denying that the cannabis industry is a lucrative business. Colorado, Washington, and California have already hit the $1 billion mark from marijuana sales, and other states are not falling behind that much.
Which Are the Top Cannabis Companies Right Now?
States are cashing in on the marijuana business, so why shouldn’t investors and venture capitalists reap some of the benefits of this budding industry? Businesses operating in the cannabis industry may not be the richest companies in the world, but they are making a profit despite enthusiasm deflating a bit after the initial jump in stock prices.
Here are some of the top-ranked marijuana enterprises ranked according to their current market caps as presented on Yahoo Finance.
1. Canopy Growth (NYSE: CGC)
Market cap: $7.074b
Founded: May 2009
Number of employees: 3,850
Despite posting losses of CA$1.28 billion in the most recent quarter, and seeing its shares lose more than half their value in the past 5 months, this company has too much long-term potential to be simply written off.
Especially, after the cash boost it got from alcoholic beverages company Constellation Brands (NYSE: STZ), the company got the confidence to expand (perhaps too much confidence, experts on investing in marijuana companies say). Still, with brands like Tweed in its portfolio and a lot of celebrity backup, CGC stock is definitely one to watch.
2. Scotts Miracle-Gro (NYSE: SMG)
Market cap: $ 6.116b
Sector: Home&Office Products
Founded: November 2004
Number of employees: 5,150
Scotts Miracle Gro stock is one of the best ancillary providers on the market. With a YOY rise of 19% to $4.47 per share, the company seems to have gotten over its rough patch in 2018. Actually, it is one of the few American cannabis companies that expect growth next year, so it’s no wonder that Scotts Miracle Gro stock currently has a Zacks Rank #2 (Buy).
We shouldn’t forget that almost 90% of the company’s revenue is generated from the sale of lawn and garden products, which means that it isn’t solely focused on the marijuana market.
3. Aurora Cannabis (NYSE: ACB)
Market cap: $3.72b
Founded: December 2006
Number of employees: 2,779
Based in Canada, Aurora Cannabis is one of the biggest public marijuana companies in the world. Little wonder, as Canada is one of the largest marijuana producers. Like other players on the market, this company had a tough break last year. In just three months, Aurora Cannabis stock plummeted by over 40%. However, the former most-held stock on the Robinhood app has a lot going for it.
For one thing, with 15 production capacities, Aurora is able to produce a minimum of 660kg (1,459 pounds) per year, which makes it a leader among cannabis growers. And now with the announcements of new CBD products and edibles, and experts pointing to it as one of the best 420 stocks to buy, it seems the sky’s the limit for this cannabis company.
4. Tilray (NASDAQ: TLRY)
Market cap: $3.61b
Founded: January 2018
Number of employees: 657
Perhaps the weed stock that took investors on the wildest roller coaster, TLRY started off slow only to skyrocket to $214 last September and then plummet to $29 per share this summer. What’s more, the company has yet to show any meaningful profit. It might have been the first of the Canadian marijuana companies to debut on a major US stock market, but Tilray is one of the worst-performing cannabis stocks in the year.
Analysts say that all hope is not lost for Tilray. The company announced its involvement in a major clinical trial in the US, which could improve its standing. Also, with its expansion into the cannabis-infused drinks and edibles market, Tilray could emerge on top in the long run.
5. GW Pharmaceuticals (NASDAQ: GWPH)
Market cap: $3.361b
Founded: February 2001
Number of employees: 791
One of the biggest marijuana companies in the world, GW Pharmaceuticals is mostly known for being the developer of the first FDA-approved, cannabis-based drug Epidiolex for the treatment of rare epilepsy conditions. It also makes Sativex, a treatment for MS, which is the first cannabinoid-based medicine in the world. Things are looking good right now for one of the biggest companies in the world of pharmaceuticals.
GWPH shares rose after its flagship drug was approved for use in the UK, and the sales of Epidiolex at $86.1 million beat estimates, making this one of the best medical marijuana companies to invest in.
6. Cronos Group (NASDAQ: CRON)
Market cap: $3.014B
Founded: August 2012
Number of employees: 291
Cronos Group operates across the globe and mainly deals in the production and sale of medical marijuana, as well as the cultivation of cannabis oil. It recently made marijuana news when tobacco giant Altria (NYSE: MO) invested in the company and provided enough cash flow for Cronos to acquire Lord Jones, an extremely popular brand of CBD-infused body lotions, gummies, and bath products. Its acquisition of CBD distributor Redwood Holding, which allowed the company to get a foothold in the US market, makes Cronos one CBD stocks to watch this year.
7. Arena Pharmaceuticals Inc (NASDAQ: ARNA)
Market cap: $2.31b
Founded: April 1997
Number of employees: 194
ARNA share prices might be up 20%. On the other hand, this is a far cry from the 60% increase from the summer. Also, its Q3 reports show a fall in revenue by 61%. Instead of the $2 million analysts had been expecting, the company only generated a half in the third quarter. Is NASDAQ: ARNA one of the weed companies to invest in? Maybe not right now.
But, it’s not all bad news. This biotech company is mostly focused on collaboration and royalty revenue, two sectors in which it did just fine.
8. Curaleaf Holdings (OTCMKTS: CURLF)
Market cap: $2.395b
Founded: November 2014
Number of employees: 1,073
With announcements of reaching nearly $1.2 billion from sales in 2020, there’s no denying that this company is planning on going big. Curaleaf currently has 49 dispensaries across the country, 14 cultivation sites, and 13 processing facilities, making it one of the marijuana companies with the biggest assets in the US. Even more importantly, it has two open acquisition deals, one with Cura Partners, owner of the Select brand, and the other with Grassroots. Both deals could lead to Curaleaf owning 131 stores as well as a huge wholesale distribution network, so it might reach those impressive sales numbers after all.
9. Green Thumb Industries (OTCMKTS: GTBIF)
Market cap: $ 1.753b
Founded: June 2002
Number of employees: 1,200
In addition to cannabis production, GTBIF also owns Rise and Essence retail stores. With 32 stores in 12 states, it is one of the influential US cannabis companies on the market.
Green Thumb Industries reported an increase in Q2 revenue to $44.7 million, or a YOY of 228%. Its growth is mostly due to increased sales in the company’s retail stores. Despite the fact that this weed stock still isn’t very profitable, GTBIF prospects look good. It has so far shown impressive results, and it is only just beginning to expand, so it’s easy to see why it is one of the best marijuana companies to invest in.
10. Aphria (NYSE: APHA)
Market cap: $1.6b
Founded: June 2011
Number of employees: 620
Aphria is somewhat of a rarity in the cannabis industry simply because it is one of the few companies that made a profit. In October 2019 it reported revenue of $126 million, and an amazing 849% YOY increase! Even though most of its profit comes from Germany and South America, it is still a feat in the otherwise disappointing marijuana market. What’s more, it also recorded net profit for the second quarter in a row, which is not something most medical marijuana stock companies can’t brag about.
Aphria recently announced that it plans to increase production up to 255,000 kg putting it third on the list of the largest marijuana growers.
11. Trulieve Cannabis (OTC: TCNNF)
Market cap: $1.176b
Sector: Health Care
Founded: September 1940
Number of employees: 2,000
TCNNF stock is moving between $8 and $1, while the company reported strong Q2 results with a revenue of $57.9 million. The secret to the company’s success, which is one of the largest marijuana companies in Florida, is prudent decisions. By deciding to avoid aggressive expansions and focusing mostly on building a brand in its native state, although it has stores in other states too, Trulieve was able to avoid costly investments. This company currently owns and operates 39 retail stores across the US.
12. Cara Therapeutics (NASDAQ: CARA)
Market cap: $1.006b
Founded: February 2004
Number of employees: 55
This US company develops drugs to treat diseases associated with pain and inflammation. Cara Therapeutics has outperformed the market, which is why marijuanastocks.com reviews have listed this company as one of the marijuana stocks to watch. Not only did it report revenue of $5.8 million in Q3 and beat the highest analysist’s estimates, but it also has big plans for the future. It is currently involved in three Phase 2 clinical trials to assess the oral version of its famous Korsuva injection.
13. Charlotte’s Web (OTCMKTS: CWBHF)
Market cap: $985.778m
Founded: August 2018
Number of employees: 320
There are a couple of factors going for Charlotte’s Web. First, being one of the Colorado marijuana companies, it is perfectly positioned to take advantage of all the legal benefits this state offers. It also has a nice, clean image that helps lift some of the negative associations with cannabis, and it offers diverse CBD products, such as topicals, edibles, and oils. The company reported solid results for Q2 with revenue of $25 million, or a YOY increase of 45%.
14. Innovative Industrial Properties (NYSE: IIPR)
Market cap: $948.66m
Founded: June 2016
Number of employees: 11
IIPR manages industrial facilities that are leased to medical marijuana companies. Pointed out as one of the underappreciated medical marijuana stocks, this San-Diego real estate company reported incredibly good Q3 results: net income of $6.2 million, up from $1.5 million for Q3 2018, and an increase in share prices by 8%.
The key to the company’s success is acquisition, plus all of its properties are leased via triple-net, long-term leases.
15. Harvest Health & Recreation (OTCMKTS: HRVSF)
Market cap: $801.212m
Founded: November 2007
Number of employees: 782
One of the vertically-integrated publicly traded cannabis companies in Arizona, this company witnessed a sequential rise in revenue in Q2 to $26.6 million. The increase is fueled by HRVSF’s recent deal with the Asian American Trade Associations Council for the distribution of CBD products in over 10,000 locations in the company’s retail network.
Harvest Health & Recreation has another deal in the works, the one with Verano Holdings, which will give it access to even more retail locations and thus a boost in sales.
16. Cresco Labs (OTC: CRLBF)
Market cap: $725.879m
Founded: July 1990
Number of employees: 1,400
Another of the successful publicly traded marijuana companies, this Chicago-based business reported an amazing 253% YOY increase with Q2 revenue of $29.9 million. Even more impressive are Wall Street estimates of revenue reaching about $664 million by 2020, which might just happen. The driving force behind the company’s future success is its pending deal with California distributor Origin House, allowing Cresco access to over 500 dispensaries in the Golden state.
17. Hexo (NYSE: HEXO)
Market cap: $ 600.206m
Founded: October 2013
Number of employees: 822
Hexo is not one of marijuana companies to invest in with little risk. This producer of cannabis oil, powders, and sprays has seen hard times lately. Shares were dropping over the summer, but prices finally settled at around $2.35. However, this company has reported almost a billion dollars decline in market value over the past 6 months. Maybe the deal with Molson Coors Brewing (NYSE: TAP) about CBD beverages and edibles can help this Canadian company get back on its feet.
18. OrganiGram Holdings (NASDAQ: OGI)
Market cap: $ 448.566m
Founded: May 2010
Number of employees: 622
One of the rare marijuana stock companies reporting operating profits, OrganiGram Holdings recorded net revenue of $24.8 million in Q3, which amounts to roughly $1.17 million in operating income. The company recently issued revenue guidance on Q4, saying that they expect YOY growth of about 547% for the fiscal full year, but lower net revenue for the fourth quarter than what analysts originally predicted. This announcement has caused its shares to drop by 11%.
Nevertheless, the company also expects improvements in cultivation costs and a better yield. OGI has quality on its side as it is one of the few publicly traded weed companies to continually produce high cannabinoid content in their flower and sweet leaf.
19. Village Farms International (NASDAQ: VFF)
Market cap: $421.788m
Sector: Consumer Staples
Founded: December 2009
Number of employees: 1,000
This small-cap company rose from a grower of vegetables to a player in the marijuana business. In addition to its joint venture with Emerald Health Therapeutics, it recently announced a partnership with Arkansas Valley Hemp, which makes this company well poised to increase its output to 150,000 kg per year. It’s not as much as some of the largest cannabis companies, but it’s not to be underestimated.
It also allows VFF to enter the Colorado hemp market. But wait, there’s more good news. VFF showed very good Q2 results: revenue was up by 27% and net income stood at $9.9 million, or $0.20 per share.
20. Acreage Holdings (OTC: ACRGF)
Market cap: $416.752m
Founded: June 1989
Number of employees: 300
An already established company in the US, Acreage Holdings reported a Q3 YOY increase of 307%, or revenue of $22.4 million. On the flip side, similar to other public cannabis companies, Acreage lost $2.11 billion in market value in the past 6 months.
What could save this company is its deal with CGG that would turn these two companies into a powerhouse in North America, but only if marijuana is legalized in the US. Although many experts believe that this is not a far-fetched possibility, nothing has happened since the deal was announced that would indicate a move in a positive direction.
21. Valens GroWorks (OTC: VGWCF)
Market cap: $285.212m
Founded: January 1981
Number of employees: 25
One of the best publicly traded CBD oil companies, Valens GroWorks generated revenue of $16.5 million in Q3, an 87% increase over Q2 and a whopping 641% over Q1. And it shows no signs of slowing down. It recently announced its acquisition of beverage company Pommies Cider Co, which means that Valens is expanding into the CBD-infused beverages and edibles market.
The good thing about this company, which is one of the best Canadian marijuana stocks right now, is its dealing in derivatives extraction. There will always be demand for its product by the biggest players among marijuana companies, like Tilray and HEXO.
22. MedMen Enterprises (OTC: MMNFF)
Market cap: $184.211m
Sector: Consumer Staples
Founded: December 1991
Number of employees: over 1,300
Almost all companies in the marijuana industry are struggling right now, but this cannabis producer and retailer seems to be hit the hardest. It is reporting twice as high net losses for Q4 than the previous quarter, experiencing legal issues (the former CFO is suing them for wrongful termination) and their execs are leaving the company.
On the plus side, MedMen is one of California cannabis companies, the largest legal cannabis market in the world, where it holds a 7% market share. It also reported that full-year revenue was up by 227% year-over-year, making it a new record. MedMen currently has 34 retail stores across the US, so maybe this foothold will help it recover.
23. KushCo Holdings (OTC: KSHB)
Market cap: $152.814m
Founded: February 2014
Number of employees: 202
A California-based business, KushCo Holdings is one of the best marijuana packaging companies. Its fourth-quarter net revenue reached $47 million, which is a year-over-year increase of 135%. KushCo recently announced its partnership with Sentia Wellness allowing it to branch out into the retail sector in a pretty big way. Sentia Wellness might sound familiar as the owner of the Social CBD product line that offers CBD products for people and pets, which is one of the fastest-growing market segments of the marijuana industry.
The 3 Top Marijuana’s Penny Stocks Since 2018
Auxly Cannabis Group (OTC: CBWTF)
This company is a vertically integrated cannabis company. It primarily started as a streaming company, but later diversified into growing weed and other joint ventures, namely its partnership with tobacco giant Imperial Brands. Despite losing almost CA$14 million in Q2, the future of this company as it enters the Canadian 2.0 cannabis market is looking bright.
Supreme Cannabis (OTC: SPRWF)
One of the cheapest shares among marijuana companies, this company’s stock is sold at under $5, which doesn’t mean that there isn’t potential. With Q3 revenue soaring by 90% and the consistent and recognizable quality of its 7ACRES brand, SPRWF stock might double in value.
Aleafia Health (OTC: ALEAF)
Aleafia Health just reported its first profitable quarter with a net income of $1.86 million. Offering oils, capsules, and sprays, ALEAF is an integrated wellness company that has demonstrated some impressive results, so It’s definitely one of the marijuana penny stocks to watch.
The future still looks pretty green for marijuana companies in spite of downward trends and stocks crashing, so specialized loan providers still have a lot of work. With Canada legalizing weed and 11 US states allowing the use of recreational marijuana, there is endless potential both for investors and for the growth and expansion of the companies themselves.