This year has already been a study in contrasts for Aurora Cannabis (NYSE:ACB) and Cresco Labs (OTC:CRLB.F). By the end of March, both cannabis companies had seen their valuations more than halved. But since April, shares of both Aurora and Cresco have soared.
Cresco Labs has been the bigger winner in recent months. But which of these marijuana stocks is the better pick for long-term investors?
The case for Aurora Cannabis
Are happy days here again for Aurora Cannabis? Some might think so. The Canadian cannabis producer delivered surprisingly good fiscal 2020 third-quarter results. Revenue jumped 18% from the previous quarter thanks in large part to strong demand for Aurora’s Daily Special value brand.
Aurora also seems to be making progress toward profitability. The company has cut back drastically on its spending. It hopes to generate positive adjusted EBITDA in the quarter ending Sept. 30, 2020.
After a temporary suspension in Germany, Aurora is now back in full swing in the key European medical cannabis market. At long last, Aurora is also now poised to enter the U.S. CBD market. In May, the company announced that it is acquiring Reliva, which ranks as one of the top-selling hemp-derived CBD brands in the U.S. Reliva’s products are carried in more than…