3 Marijuana Stocks Better Than Sundial Growers That Robinhood Investors Can’t Buy

Sundial growers ((NASDAQ: SNDL) is one of the most popular cannabis stocks at Robinhood. In fact, it is the third most popular stock among investors using the trading platform.

Seven other top stocks are also featured on Robinhood’s list of 100 Most Popular Stocks. Some of them are arguably better positioned than the sundial for long-term success. Robinhood doesn’t endorse trading many of the best stocks in the cannabis industry, however, as these are only available over-the-counter. There are three here Marijuana stocks Better than Sundial Growers Robinhood investors can’t buy.

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1. Ayr Wellness

Ayr wellness‘ ((OTC: AYRW.F) The market cap of around $ 1.1 billion is well below Sundial’s market cap of $ 1.7 billion. However, the US multistate operator (MSO) generated more than four times more revenue than Sundial in the fourth quarter.

More importantly, Ayr continues to experience strong growth. Fourth quarter revenue increased 48% year over year, while Sundial revenue declined year over year. Ayr also had positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 19.4 million in the fourth quarter. Sundial posted an adjusted EBITDA loss.

Ayr should have no problem maintaining his momentum. The company’s recent acquisition of Liberty Health Sciences gives it a solid position in the rapidly growing medical cannabis market in Florida. Ayr also completed acquisitions in Arizona and Ohio in March and signed a pending contract that will allow it to break into New Jersey.

The company forecasts full year 2022 revenue of $ 725 million and adjusted EBITDA of $ 325 million. That goal appears to be achievable with Ayr’s Deal range. Sundial is hoping 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 rating than Sundial Growers. The value for money (P / S) is just over a tenth the size of Sundial’s Forward P / S multiple.

Like Ayr Wellness, Cresco blows the sundial out of the water when it comes to growing. Cresco’s In the fourth quarter, sales almost tripled compared to the previous year from 2020 to $ 162.3 million. The multistate operator achieved an adjusted EBITDA of $ 50 million.

The growth advantage of Cresco over the sundial should remain. The company expanded its presence in Ohio with the acquisition of four medical cannabis dispensaries in February. Cresco will soon enter Florida’s medical cannabis market with the acquisition of Bluma wellness.

Probably the greatest opportunity for Cresco, however, is New York. The Empire State recently legalized recreational marijuana. Cresco is one of only 10 cannabis operators licensed for vertical surgery in New York State.

3. Curaleaf Holdings

Curaleaf Holdings ((OTC: CURLF) is the largest US multistate cannabis operator and claims a market capitalization of around $ 10 billion. While much larger than Sundial Growers, Curaleaf is still a better deal than its Canadian counterpart with a 73% lower Forward P / S ratio.

In the fourth quarter, Curaleaf’s total revenue more than tripled year over year to $ 230.3 million. Adjusted EBITDA increased 289% to $ 53.8 million.

As with Ayr Wellness and Cresco Labs, acquisitions have played an important role in Curaleaf’s phenomenal growth. In particular, the company’s purchase of grassroots in July 2020 increased sales enormously. Prior to its acquisition by Curaleaf, Grassroots was the largest privately held vertically integrated MSO in the United States

While the future growth prospects for Sundial are a little bleak, Curaleaf should have a clear runway for future growth. It already claims the # 1 share of the New York medical cannabis market. The company will almost certainly be a leader in the state recreational marijuana market as well. Curaleaf also recently acquired EMMAC Life Sciences to help the company expand into the European medical cannabis markets.