Cronos vs Aurora Which Is a Smarter Choice?

Cronos and Aurora Cannabis are two prominent players in the rapidly-growing cannabis industry. As leading Canadian-based companies, both Cronos and Aurora have garnered significant attention from investors seeking to capitalize on the expanding market for legal marijuana products. While Cronos has focused on strategic partnerships and international expansion, Aurora has distinguished itself through its large-scale production facilities and diverse product offerings. Understanding the strengths and weaknesses of both companies is crucial for investors looking to navigate the dynamic landscape of cannabis stocks.

Cronos or Aurora?

When comparing Cronos and Aurora, 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 Cronos and Aurora.

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. Cronos has a dividend yield of -%, while Aurora has a dividend yield of 6.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cronos reports a 5-year dividend growth of 0.00% year and a payout ratio of -0.71%. On the other hand, Aurora reports a 5-year dividend growth of -4.77% year and a payout ratio of 102.72%.

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 Cronos P/E ratio at -15.31 and Aurora's P/E ratio at 14.91. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cronos P/B ratio is 0.69 while Aurora's P/B ratio is 2.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cronos has seen a 5-year revenue growth of 2.42%, while Aurora's is -0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cronos's ROE at -4.52% and Aurora's ROE at 14.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.94 for Cronos and NT$66.40 for Aurora. Over the past year, Cronos's prices ranged from $1.85 to $3.14, with a yearly change of 69.73%. Aurora's prices fluctuated between NT$66.20 and NT$77.00, with a yearly change of 16.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.