Sundial Growers (NASDAQ:SNDL) ranks as the most popular cannabis stock on Robinhood. It’s even the third most widely held stock overall among investors using the trading platform…
Seven other pot stocks are also included in the list of the top 100 most popular stocks on Robinhood. Several of them are arguably better positioned for long-term success than Sundial is. But Robinhood doesn’t support trading in many of the best stocks in the cannabis industry because they’re only available over the counter. Here are three marijuana stocks better than Sundial Growers that Robinhood investors can’t buy.
1. Ayr Wellness
Ayr Wellness‘ (OTC:AYRW.F) market cap of around $1.1 billion is well below Sundial’s $1.7 billion market cap. However, the U.S. multistate operator (MSO) generated over four times more revenue in its fourth quarter than Sundial did.
More importantly, Ayr continues to deliver strong growth. Its Q4 revenue soared 48% year over year while Sundial’s revenue declined year over year. Ayr also posted positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $19.4 million in Q4. Sundial reported an adjusted EBITDA loss.
Ayr shouldn’t have any problems keeping its momentum going. The company’s recent acquisition of Liberty Health Sciences gives it a solid position in the fast-growing Florida medical cannabis market. Ayr also completed acquisitions in Arizona and Ohio in March and has a pending deal that will give it a foothold in New Jersey.
The company projects full-year 2022 revenue of $725 million and adjusted EBITDA of $325 million. That goal seems attainable with Ayr’s string of deals. Sundial hopes to make some investments of its own, but Ayr is clearly in a stronger position.
2. Cresco Labs
Cresco Labs (OTC:CRLBF) also offers a much more attractive valuation than Sundial Growers does. Its forward price-to-sales (P/S) ratio is a little over one-tenth the size of Sundial’s forward P/S multiple.
Like Ayr Wellness, Cresco blows Sundial out of the water when it comes to delivering growth. Cresco’s revenue nearly tripled year over year in the fourth quarter of 2020 to $162.3 million. The multistate operator generated adjusted EBITDA of $50 million.
Cresco’s growth advantage over Sundial is likely to persist. The company expanded its presence in…
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