Cannabis Stocks: Here Are The Most Profitable & Efficient

MJ Alternative Harvest ETF (MJ)

Cannabis stocks are soaring; “Which cannabis stocks do you recommend?”  I get this question so many times I have lost track.  I have been going through an eternally long list of cannabis stocks to figure out which would be good investments versus others.

While I am doing a very thorough analysis of cannabis companies on an individual basis, every Saturday, I try and put together a listing of all these companies and compare them in some manner.  The idea is that while you may be looking at one individual stock and think it is a good buy, or not, how does it stack up to the rest?

It is a competitive world and having the most budget does not necessarily mean your company is the most efficient and will return the most profits to an investor.  By looking at these individual companies and seeing where it resides on a listing versus the others, an investor can then determine how well of a job, on a peer basis, that company is doing.

I have found these weekly comparisons invaluable simply because I am looking at vast numbers of companies and when you stack them up against each other you get a better idea of where in the pack against other companies.  One of the things I like is putting the pieces of each puzzle together for each company via all of the various articles I do.

The Best of the Best

For the record, the #1 company on this list I just did an analysis on and immediately went heavily bullish; that being C21 Investments (CXXIF); they checked all of my boxes.  I was very glad to see how my initial intuition of this company stacked up against everyone else.  In fact, I was blown away.

*An asterisk:  There were three companies that I moved lower on the list in order to highlight what I thought was the rightful leader.  WeedMD (WDDMF), iAnthus Capital (ITHUF), and Liberty Health Science (LHSIF) had outliers that pushed their gross margins upwards significantly.  They are all performing well and I wanted to highlight them but did not want to leave them at the top of the list because I felt it was misleading.

How this listing was compiled

As you can read above, I am very focused on margins and efficiencies.  This is the metric by which I measure management.  I boil everything down to metrics.  This is difficult on two levels.  First, there is a lot of variability in growing cannabis.  It is a plant.  And, yield can be, well, variable.  The other thing is that this is a brand new industry and all of these companies are still in the process of building themselves up; cannabis is hardly a mature industry.

Gross margins are determined by the total revenues minus the costs to produce these products.  Then, to figure out the percentage, you merely divide the remaining by the total revenue and you have the figure that is gross margins on a percentage basis.

For example, if a company sells $1,000.00 in total revenue, but what it takes to produce these products is $350.00, their gross margins would be $650.00, or 65%.  You would want this number to be as high as it can be.  I have found a cannabis company that worked as a dispensary to have the highest and most consistent margins.  When you think this through, this makes a great deal of sense.  A dispensary has fairly consistent costs since they are purchasing the product in its final form and selling on a retail basis.

Then, the next metric is operating efficiencies.  This is basically a measure of the efficiencies of the output of a product by a company on a percentage basis.  For this, I take total operating costs and divide this by total revenue.  A company would want this number to be as low as possible.

The next metric, taking the percentage numbers, you would subtract operating efficiencies from gross margins.

For example, C21 Investments: They have margins of 62.1% and it cost them 27.4% in operational costs to manufacture their products.  This leaves them 34.7% of margins left over for profits.  This is the highest number of the companies on this list.  As an investor, you are looking for this number to be the highest because, ultimately, management is earning the highest margins with the lowest cost metrics.

The thing is, the companies at the very top are doing the very best job, from my perspective.  They have a combination of high gross margins along with the best efficiencies to produce these products.  This is the pathway to profitability.  A company that is pushing their margins to the top of the industry standards, while simultaneously pushing efficiencies to the very best they can will inevitably be more profitable in the long run.  The extra income they earn can then be employed, optimally, towards endeavors that will produce the highest rewards.  I’m all in.

Then there are the laggards.  Take a look around for the big-name companies that always get the biggest headlines and the biggest investment dollars.  Those companies are way at the bottom.  There are companies with 11 decimal points in their valuations getting their butts whooped by companies worth single-digit millions.

I’m in this to invest and win.  I know where I am putting my money.  I’m all in.

Inclusion in this list

I have some 150 companies on this list.  I have another listing of some 350 companies that did not make this list simply because they do not report financial information on a regular enough basis and this would make investing in them difficult simply because there is not enough information.  The second listing has companies that are either up-and-coming or just flat-out dawgs.  While they are still publicly traded, who knows what their status may be in the future.

That being said, AYR Strategies (AYRWF) has been removed until they can come up with a strategy of reporting information to investors.

That being said, if you do not see your favorite company on this list, look within Seeking Alpha on the financial information page of the company.  If there is information available, and that stock is not on my list, please let me know and I will start doing an analysis on them.

What are my favorite cannabis stock picks?

Now you can find out!

This is a once-in-a-lifetime opportunity to capitalize on a new industry that is booming.
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Most Profitable & Efficient Cannabis Stocks

Rank Symbol Name Revenue Gross Profit Gross Margin Operating Cost Operating Efficiency Operating Profit %
1 LTTSF LIBERTY HEALTH SCIENCES INC $10.0 $0.7 93.0% $5.5 55.0% 38.0%
2 CXXIF C21 INVESTMENTS INC $9.5 $3.6 62.1% $2.6 27.4% 34.7%
3 MRMD MARIMED INC $13.5 $4.8 64.4% $4.4 32.6% 31.9%
4 TCNNF TRULIEVE CANNABIS CORP $136.0 $50.9 62.6% $42.0 30.9% 31.7%
5 LOWLF Lowell Farms $14.1 $4.9 65.2% $4.9 34.8% 30.5%
6 TRSSF TERRASCEND CORP $38.3 $12.3 67.9% $15.4 40.2% 27.7%
7 CRLBF CRESCO LABS INC $149.0 $57.1 61.7% $52.6 35.3% 26.4%
8 GTBIF GREEN THUMB INDUSTRIES INC $157.1 $70.1 55.4% $49.7 31.6% 23.7%
9 MYMMF MYM NUTRACEUTICALS INC $2.7 $1.2 55.6% $0.9 33.3% 22.2%
10 NXGWF NEXT GREEN WAVE HOLDINGS INC $3.6 $1.9 47.2% $0.9 25.0% 22.2%
11 HRVSF HARVEST HEALTH AND RECREATION I $61.6 $23.3 62.2% $26.4 42.9% 19.3%
12 CURLF CURALEAF HOLDINGS  INC $182.4 $66.6 63.5% $81.6 44.7% 18.8%
13 ITHUF IANTHUS CAPITAL HOLDINGS INC $40.6 -$4.4 89.2% $28.9 71.2% 18.0%
14 PLNHF PLANET 13 HOLDINGS INC $22.8 $10.3 54.8% $8.8 38.6% 16.2%
15 ALTERNATE HEALTH CORP $2.3 $0.7 69.6% $1.3 56.5% 13.0%
16 HITIF HIGH TIDE INC $16.7 $10.4 37.7% $5.2 31.1% 6.6%
17 INSHF INNER SPIRIT HOLDINGS LTD $6.1 $3.3 45.9% $2.4 39.3% 6.6%
18 ORVRF ORCHID VENTURES INC $2.0 $0.9 55.0% $1.0 50.0% 5.0%
19 HBORF HARBORSIDE INC $18.4 $9.8 46.7% $7.8 42.4% 4.3%
20 TLLTF TILT HOLDINGS INC $40.4 $21.6 46.5% $17.1 42.3% 4.2%
21 JUSHF JUSHI HOLDINGS INC $24.9 $12.7 49.0% $11.8 47.4% 1.6%
22 VFF Village Farms International, In $43.0 $37.4 13.0% $5.4 12.6% 0.5%
23 GGTTF GTEC HOLDINGS LTD $1.6 $0.7 56.3% $0.9 56.3% 0.0%
24 FNNZF FINCANNA CAPITAL CORP $0.2 $0.0 100.0% $0.2 100.0% 0.0%
25 FFNTF 4FRONT VENTURES CORP $15.3 $5.0 67.3% $10.4 68.0% -0.7%
26 HSTRF HOLLISTER BIOSCIENCES INC $9.5 $8.1 14.7% $1.5 15.8% -1.1%
27 CLSH CLS HOLDINGS USA INC $4.9 $2.2 55.1% $2.8 57.1% -2.0%
28 HEXO HEXO Corp. $22.1 $8.4 62.0% $14.5 65.6% -3.6%
29 CCHWF COLUMBIA CARE INC $48.7 $17.6 63.9% $33.3 68.4% -4.5%
30 FFLWF FIRE & FLOWER HOLDINGS CORP $24.9 $16.2 34.9% $10.0 40.2% -5.2%
31 GRWC GROW CAPITAL INC $4.7 $3.7 21.3% $1.4 29.8% -8.5%
32 KSHB KUSHCO HOLDINGS INC $26.8 $21.0 21.6% $8.8 32.8% -11.2%
33 MJNA MEDICAL MARIJUANA INC $11.0 $2.2 80.0% $10.1 91.8% -11.8%
34 GAIA Gaia, Inc. $62.9 $8.2 87.0% $62.4 99.2% -12.2%
35 APHA Aphria Inc. $123.6 $93.2 24.6% $46.3 37.5% -12.9%
36 CNTMF CANSORTIUM INC $14.3 $6.6 53.8% $9.7 67.8% -14.0%
37 EXPERION HOLDINGS LTD $1.4 $1.1 21.4% $0.5 35.7% -14.3%
38 VLNCF THE VALENS COMPANY INC $13.9 $8.3 40.3% $8.2 59.0% -18.7%
39 SRNA SURNA INC $1.6 $1.1 31.3% $0.8 50.0% -18.8%
40 LVVV LIVEWIRE ERGOGENICS INC $0.8 $0.5 37.5% $0.5 62.5% -25.0%
41 ZBISF ZENABIS GLOBAL INC $17.8 $14.1 20.8% $8.5 47.8% -27.0%
42 SPRWF SUPREME CANNABIS CO INC $14.4 $12.6 12.5% $5.8 40.3% -27.8%
43 TLRY Tilray, Inc. - Class 2 $56.6 $39.9 29.5% $33.5 59.2% -29.7%
44 DLTNF DELTA 9 CANNABIS INC $9.9 $8.6 13.1% $4.9 49.5% -36.4%
45 VREOF VIREO HEALTH INTERNATIONAL INC $11.9 $10.0 16.0% $6.9 58.0% -42.0%
46 STMH STEM HOLDINGS INC $5.2 $0.0 100.0% $7.5 144.2% -44.2%
47 MANIFESTSEVEN HOLDINGS CORPORAT $4.7 $3.5 25.5% $3.3 70.2% -44.7%
48 GLDFF GOLDEN LEAF HOLDINGS LTD $19.9 $14.8 25.6% $14.0 70.4% -44.7%
49 WCEXF WORLD CLASS EXTRACTIONS INC $1.7 $1.2 29.4% $1.3 76.5% -47.1%
50 SARSF CANADA HOUSE WELLNESS GROUP INC $1.7 $0.6 64.7% $1.9 111.8% -47.1%
51 MEDICINE MAN TECHNOLOGIES INC $7.4 $4.6 37.8% $6.4 86.5% -48.6%
52 SNDD Red Hawk $0.4 $0.3 25.0% $0.3 75.0% -50.0%
53 DPWW DIEGO PELLICER WORLDWIDE INC $0.4 $0.0 100.0% $0.6 150.0% -50.0%
54 NCNNF 48NORTH CANNABIS CORP $4.7 $5.5 -17.0% $1.6 34.0% -51.1%
55 CVSI CV SCIENCES INC $5.6 $3.1 44.6% $5.6 100.0% -55.4%
56 ACNNF AUSCANN GROUP HOLDINGS LTD $1.0 $0.9 10.0% $0.7 70.0% -60.0%
57 NLVVF NEW LEAF VENTURES INC $0.6 $0.0 100.0% $1.0 166.7% -66.7%
58 VVCIF VIVO CANNABIS INC $5.6 $4.5 19.6% $4.9 87.5% -67.9%
59 ACREAGE HOLDINGS INC $31.7 $18.3 42.3% $35.0 110.4% -68.1%
60 IGC IGNITE INTERNATIONAL BRANDS LTD $1.3 $1.0 23.1% $1.2 92.3% -69.2%
61 ACB Aurora Cannabis Inc. $53.2 $39.5 25.8% $50.6 95.1% -69.4%
62 CNWTF AUXLY CANNABIS GROUP INC $10.1 $7.2 28.7% $10.3 102.0% -73.3%
63 MMNFF MEDMEN ENTERPRISES INC $33.8 $15.8 53.3% $43.2 127.8% -74.6%
64 CANN GENERAL CANNABIS CORP $1.6 $1.0 37.5% $1.8 112.5% -75.0%
65 LBUY LEAFBUYER TECHNOLOGIES INC $0.6 $0.5 16.7% $0.6 100.0% -83.3%
66 AGFY Agrify Corporation $2.8 $3.0 -7.1% $2.2 78.6% -85.7%
67 CANOPY RIVERS INC $4.5 $4.9 -8.9% $3.5 77.8% -86.7%
68 MJARF MJARDIN GROUP INC $3.6 $1.7 52.8% $5.1 141.7% -88.9%
69 CGC Canopy Growth Corporation $119.0 $88.3 25.8% $137.3 115.4% -89.6%
70 VFRM VERITAS FARMS INC $1.5 $0.6 60.0% $2.4 160.0% -100.0%
71 ACAN AMERICANN INC $0.3 $0.0 100.0% $0.6 200.0% -100.0%
72 NXTTF NAMASTE TECHNOLOGIES INC $4.4 $4.0 9.1% $5.1 115.9% -106.8%
73 LOTUS VENTURES INC $1.1 $0.4 63.6% $1.9 172.7% -109.1%
74 PLPRF PLUS PRODUCTS INC $3.7 $4.9 -32.4% $2.9 78.4% -110.8%
75 ROMJF RUBICON ORGANICS INC $2.4 $2.9 -20.8% $2.2 91.7% -112.5%
76 WDDMF WEEDMD INC $4.7 -$4.4 6.4% $5.6 119.1% -112.8%
77 CBDS CANNABIS SATIVA INC $0.5 $0.2 60.0% $0.9 180.0% -120.0%
78 HLSPY HELIOSPECTRA AB $0.8 $0.6 25.0% $1.2 150.0% -125.0%
79 TRTC TERRA TECH CORP $3.1 $1.6 48.4% $5.6 180.6% -132.3%
80 EPWCF EMPOWER CLINICS INC $0.6 $0.2 66.7% $1.2 200.0% -133.3%
81 KGKG KONA GOLD SOLUTIONS INC $0.3 $0.2 33.3% $0.5 166.7% -133.3%
82 TGODF GREEN ORGANIC DUTCHMAN HLDGS LT $3.7 -$0.2 94.6% $8.5 229.7% -135.1%
83 FLOOF FLOWER ONE HOLDINGS INC $11.9 $22.3 -87.4% $6.5 54.6% -142.0%
84 OGI Organigram Holdings Inc. $14.9 $27.7 -85.9% $8.9 59.7% -145.6%
85 SPLIF NUTRITIONAL HIGH INTERNATIONAL $1.0 $0.9 10.0% $1.6 160.0% -150.0%
86 HRVOF HARVEST ONE CANNABIS INC $1.4 $1.0 28.6% $2.5 178.6% -150.0%
87 MJNE MJ HOLDINGS INC $0.2 $0.0 100.0% $0.5 250.0% -150.0%
88 NEPT Neptune Wellness Solutions Inc. $41.5 $49.7 -19.8% $60.2 145.1% -164.8%
89 HDRPF THC GLOBAL GROUP LTD $1.2 $0.8 33.3% $2.4 200.0% -166.7%
90 BMWLF BLUMA WELLNESS INC $3.1 -$3.5 -12.9% $5.8 187.1% -200.0%
91 BANG HOLDINGS CORP $0.1 $0.1 0.0% $0.2 200.0% -200.0%
92 BHNGF BHANG INC $0.3 $0.2 33.3% $0.7 233.3% -200.0%
93 KAYS KAYA HLDGS INC $0.3 $0.1 66.7% $0.9 300.0% -233.3%
94 LOVFF CANNARA BIOTECH INC $1.0 $1.4 -40.0% $2.0 200.0% -240.0%
95 MEDIF MEDIPHARM LABS CORP $3.7 -$8.0 -116.2% $4.6 124.3% -240.5%
96 SNDL Sundial Growers Inc. $9.7 $24.3 -150.5% $9.7 100.0% -250.5%
97 EMHTF EMERALD HEALTH THERAPEUTICS INC $2.5 $6.6 -164.0% $3.3 132.0% -296.0%
98 KHRNF KHIRON LIFE SCIENCES CORP $1.4 $0.8 42.9% $5.6 400.0% -357.1%
99 FLWPF THE FLOWR CORPORATION $2.1 $6.0 -185.7% $3.8 181.0% -366.7%
100 MGCLF MGC PHARMACEUTICALS LTD $0.6 $0.6 0.0% $2.4 400.0% -400.0%
101 ALEAF ALEAFIA HEALTH INC $3.7 $11.2 -202.7% $8.4 227.0% -429.7%
102 CRON Cronos Group Inc. Common Share $37.0 $66.4 -79.5% $153.6 415.1% -494.6%
103 EEVVF EVE & CO INCORPORATED $0.5 -$2.1 -320.0% $1.0 200.0% -520.0%
104 BHHKF BENCHMARK BOTANICS INC $0.2 $0.5 -150.0% $0.8 400.0% -550.0%
105 BELEAVE INC $0.3 $1.1 -266.7% $1.4 466.7% -733.3%
106 OILFF NEXTLEAF SOLUTIONS LTD $0.2 $0.6 -200.0% $1.2 600.0% -800.0%
107 MPXOF MPX INTERNATIONAL CORPORATION $2.4 $6.4 -166.7% $15.7 654.2% -820.8%
108 BVNNF BEVCANNA ENTERPRISES INC $0.1 $0.1 0.0% $0.9 900.0% -900.0%
109 CURR CURE PHARMACEUTICAL HOLDING COR $0.2 $0.1 50.0% $2.8 1400.0% -1350.0%
110 IGC India Globalization Capital Inc $0.1 $0.1 0.0% $1.9 1900.0% -1900.0%
111 AUSAF AUSTRALIS CAP INC $0.1 $0.2 -100.0% $2.0 2000.0% -2100.0%

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