© Reuters. Sundial vs. Flora Growth: Which Cannabis Stock Is a Better Investment?
Sundial Growers (NASDAQ:) is looking to pivot its business model by financing other cannabis producers. On the other hand, Flora Growth (FLGC) is expanding its business through distribution partnerships and joint ventures. Which cannabis stock is the better buy right now?.Canadian cannabis stocks have underperformed the S&P 500 significantly in 2021. That’s because these stocks carry significant risks, given that a majority of them are grappling with massive losses with a high cash burn rate.
Canada legalized marijuana at the federal level back in October 2018 but demand remained subdued due to the slow rollout of retail stores in major provinces. The COVID-19 pandemic exacerbated these issues which meant pot stocks have grossly underperformed the broader markets since the start of 2019.
However, as the demand environment normalizes and companies improve their cost structures, it might be time to look at this beaten-down sector once again. Here, we compare two Canadian cannabis companies, Sundial Growers (SNDL) and Flora Growth (FLGC), to see which is a better investment right now.
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