Aurora vs Hemp Which Is a Smarter Choice?

Aurora Cannabis and Hemp stocks have been two of the most talked-about companies in the burgeoning cannabis industry. Aurora, a Canadian cannabis producer, has gained popularity for its high-quality products and innovative approach to cultivation. On the other hand, Hemp stocks have become increasingly popular due to the growing demand for hemp-derived products such as CBD. Both companies offer unique opportunities for investors looking to capitalize on the rapidly expanding cannabis market, but each comes with its own set of risks and potential rewards. In this comparison, we will explore the key differences between Aurora and Hemp stocks to help investors make informed decisions.

Aurora or Hemp?

When comparing Aurora and Hemp, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Aurora and Hemp.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Aurora has a dividend yield of 6.14%, while Hemp has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aurora reports a 5-year dividend growth of -4.77% year and a payout ratio of 102.72%. On the other hand, Hemp reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Aurora P/E ratio at 14.98 and Hemp's P/E ratio at 0.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aurora P/B ratio is 2.01 while Hemp's P/B ratio is 0.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aurora has seen a 5-year revenue growth of -0.20%, while Hemp's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aurora's ROE at 14.00% and Hemp's ROE at 0.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$66.70 for Aurora and $0.00 for Hemp. Over the past year, Aurora's prices ranged from NT$66.20 to NT$77.00, with a yearly change of 16.31%. Hemp's prices fluctuated between $0.00 and $0.00, with a yearly change of 1900.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.