U.S. pot stocks are doing much better
Unlike in Canada, where marijuana has been legal nationwide since October 2018, new markets are continuing to pop up in the U.S., and that is making it easier for cannabis companies to expand and boost their top lines.
Multistate operator Trulieve Cannabis (OTC:TCNNF) is coming off an impressive 2020 in which its revenue of $521.5 million grew 106%. And the company is still expanding into new markets, including Massachusetts, where it recently obtained approval to begin growing plants at its facility in Holyoke.
Another company, Green Thumb Industries (OTC:GTBIF), reported even better numbers, with sales last year coming in at $556.6 million, up increasing by more than 157% year over year. And with a presence in both New York and New Jersey, two of the biggest markets to recently legalize marijuana, it too has some exciting growth opportunities ahead.
Research company BDSA projects that in Canada, the pot market will be worth just $6.1 billion by 2025. That pales in comparison to the $34.5 billion expected for the U.S. market by then.
For growth investors, there is a wide discrepancy between Canadian and U.S. pot stocks both now and over the long term, with the latter holding a significant advantage.