Which stock wins in a matchup between the top U.S. cannabis retailer and a leading Canadian marijuana grower?
Marijuana stocks, in general, have soared in recent days following the news that Constellation Brands invested a whopping $4 billion in Canopy Growth. MedMen Enterprises(NASDAQOTH:MMNFF) and Organigram Holdings (NASDAQOTH:OGRMF) are no exceptions, with both stocks jumping by double-digit percentages.
What might the future hold for MedMen and Organigram? And which marijuana stock is the better choice for investors? Here’s what you need to know about these two small cannabis companies…
The case for MedMen
MedMen is listed on the Canadian Securities Exchange (CSE). But it’s not your typical Canadian marijuana stock.
First of all, the company is actually based in the U.S. MedMen currently operates retail stores that sell marijuana and related products in three states — California, Nevada, and New York. It’s looking to expand its operations in California, as well as move into Florida, which allows the legal use of medical marijuana, and Massachusetts, where both medical and recreational marijuana use is legal.
California ranks as the biggest cannabis market in the world. Arcview Market Research and BDS Analytics project that total marijuana spending in the state will reach $7.7 billion by 2022. MedMen recently reported that its stores generated around 6% of total retail marijuana and marijuana-related product sales in California during the second quarter, based on tax revenue statistics reported by the state’s government.
MedMen opened its first store in Nevada barely over one month ago. Nevada is one of the fastest-growing cannabis markets in the U.S. MedMen’s new retail store is located in downtown Las Vegas, which receives around 40 million visitors every year.
Florida and Massachusetts could be even bigger markets than Nevada, though. Arcview and BDS Analytics see Florida as the No. 3 state in the U.S. in terms of total marijuana spending in 2022, with Massachusetts ranking sixth overall.
But while the U.S. is home for MedMen, the company has more ties to Canada than just a listing on the CSE. In March, MedMen and Cronos Group agreed to form a joint venture, MedMen Canada, to develop cannabis-branded products and launch retail cannabis stores throughout Canada.
The case for Organigram
MedMen focuses on retail sales of cannabis; Organigram focuses on…