OrganiGram vs Aurora Which Should You Buy?

OrganiGram and Aurora Cannabis are two of the biggest players in the rapidly growing cannabis industry. Both companies are Canadian-based and have seen substantial growth in recent years as the legal cannabis market expands. OrganiGram is known for its focus on organic cultivation methods and high-quality products, while Aurora has made a name for itself through strategic partnerships and international expansion. Investors are keeping a close eye on both stocks as they continue to navigate the evolving landscape of the cannabis market.

OrganiGram or Aurora?

When comparing OrganiGram 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 OrganiGram 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. OrganiGram has a dividend yield of -%, while Aurora has a dividend yield of 6.23%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. OrganiGram reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 OrganiGram P/E ratio at -2.99 and Aurora's P/E ratio at 14.80. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. OrganiGram P/B ratio is 0.74 while Aurora's P/B ratio is 1.98.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, OrganiGram has seen a 5-year revenue growth of 3.45%, while Aurora's is -0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with OrganiGram's ROE at -26.61% and Aurora's ROE at 14.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.45 for OrganiGram and NT$65.80 for Aurora. Over the past year, OrganiGram's prices ranged from $1.21 to $2.91, with a yearly change of 140.10%. Aurora's prices fluctuated between NT$65.80 and NT$77.00, with a yearly change of 17.02%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.