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The rollout of licenses for retail outlets in major Canadian provinces has been slower than expected, which has impacted demand. This in turn has hurt top-line growth and profit margins due to massive inventory write-downs. A thriving black market and a rise in competition have not helped either. Alternatively, the prospect of marijuana legalization in the U.S. at the federal level suggests potential access to a larger market for Canadian cannabis producers, which would afford them improved both revenue and profits at a fast clip.
Here, we take a look at two Canadian stocks, Aurora Cannabis (ACB) and Tilray (TLRY), that have significantly underperformed the broader markets in the last two years to see which is a better contrarian bet today.
