CannTrust vs. Aurora in the marijuana stock race

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As interest in the marijuana stock market continues to rise, two companies stand out

For many people, deciding on which stocks are deserving of investment money can often be a daunting task. As the marijuana industry is beginning to emerge in force, the exercise is especially difficult, as there are a number of companies to choose from that don’t have a background upon which to build an analysis. However, two companies in particular are safe bets that should be strong in any portfolio and both are competing for investors’ attention.

CannTrust Holdings is one of the top ten marijuana producers in terms of the size of operations. It expects to be able to produce as much as 110,231 pounds in the early part of 2019 and has plans to increase that level to twice the amount by the end of the year. CannTrust already has a solid reputation and is expected to be the exclusive sales partner for Breakthru Beverage Group, Canada’s largest alcohol beverage broker and upcoming cannabis beverage broker.

CannTrust isn’t just set on Canadian operations, either. It is the only producer that ships cannabis oils to Denmark through an agreement with Stenocare and is also in Germany, the Netherlands and Australia through a partnership with Canadian drug manufacturer Apotex.

The second company, Aurora Cannabis, is now virtually a household name in the cannabis industry. It has deep pockets and a solid business plan to acquire as many companies in the industry as possible. It claims to have the ability to produce more cannabis than any other company in the marijuana space, anticipating an increase from its current amount of 154,323 pounds to more than 330,000 early next year. Aurora asserts that it will be able to produce more than 1.1 million pounds by the middle of 2020.

Aurora may have joined the marijuana space later than others, but quickly rose to the top and has more than 30% of the market share in Ontario. It has made several important deals overseas, entering into medical marijuana agreements with Germany, Poland, Malta and Denmark. It is one of the few to also have expanded into Latin America with its acquisition of ICC Labs and MED Colombia.

Either stock should be a winner over the long-term. Keep an eye on both and, when you’re ready to pull the trigger, follow your gut.