Cresco vs Curaleaf Which Outperforms?

Cresco Labs and Curaleaf Holdings are two prominent companies in the fast-growing cannabis industry, each offering unique opportunities for investors. Cresco Labs is known for its strong presence in multiple states, extensive product line, and strategic acquisitions. On the other hand, Curaleaf Holdings is one of the largest multi-state operators, with a focus on vertical integration and expanding into new markets. Both companies have experienced significant growth in recent years, making them attractive options for those looking to invest in the cannabis sector.

Cresco or Curaleaf?

When comparing Cresco and Curaleaf, 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 Cresco and Curaleaf.

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. Cresco has a dividend yield of 2.74%, while Curaleaf has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cresco reports a 5-year dividend growth of -7.14% year and a payout ratio of 0.00%. On the other hand, Curaleaf 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 Cresco P/E ratio at 12.43 and Curaleaf's P/E ratio at -5.83. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cresco P/B ratio is 1.69 while Curaleaf's P/B ratio is 1.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cresco has seen a 5-year revenue growth of 0.58%, while Curaleaf's is 8.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cresco's ROE at 14.26% and Curaleaf's ROE at -20.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1166.00 for Cresco and $1.51 for Curaleaf. Over the past year, Cresco's prices ranged from ¥887.50 to ¥1451.00, with a yearly change of 63.49%. Curaleaf's prices fluctuated between $0.88 and $6.40, with a yearly change of 630.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.