Cronos vs Tree Which Is a Smarter Choice?

Cronos Group and Tree stocks are two prominent players in the cannabis industry, both vying for a share of the burgeoning market. Cronos Group, a Canadian-based company, has established itself as a leader in the industry with a strong focus on research, development, and innovation. On the other hand, Tree stocks, a U.S.-based company, boasts a diverse portfolio of cannabis products and a growing presence in the retail market. This comparison will explore the strengths and weaknesses of both companies in the competitive cannabis landscape.

Cronos or Tree?

When comparing Cronos and Tree, 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 Tree.

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 Tree has a dividend yield of -%. 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, Tree 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 Cronos P/E ratio at -15.86 and Tree's P/E ratio at -48.63. 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 0.71 while Tree's P/B ratio is 23.82.

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 Tree's is -0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cronos's ROE at -4.52% and Tree's ROE at -42.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.02 for Cronos and HK$0.51 for Tree. Over the past year, Cronos's prices ranged from $1.85 to $3.14, with a yearly change of 69.73%. Tree's prices fluctuated between HK$0.37 and HK$1.18, with a yearly change of 218.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.