Sundial vs. OrganiGram: Which Cannabis Stock Is a Better Buy?
. Sundial vs. OrganiGram: Which Cannabis Stock Is a Better Buy?Shares of cannabis concern Sundial Growers (NASDAQ:SNDL) are down 95% from their record highs, while shares of OrganiGram (OGI) are down 70%. While these names may appear to be attractive cannabis bets for contrarian investors, a closer look at these companies’ weak financials and steep valuations may tell a different story. Read on.Cannabis stocks have been volatile this year. Not dissimilar to most nascent industries, stocks prices in the cannabis space have experienced big spikes and sharp declines over the years. Several marijuana producers are still unprofitable and are burning cash at a rapid clip. This means they must regularly raise equity capital, which dilutes shareholder value.However, investors are nevertheless bullish on the expanding pot market in North America and the prospect of pot legalization in the U.S. and several other regions. This potential makes the sector attractive to investors with large risk appetites.With this in mind, we compare two beaten-down pot stocks—Sundial Growers (SNDL) and OrganiGram (OGI)—to evaluate which is a better cannabis bet right now.Continue reading on StockNews