The cannabis industry is expected to see impressive growth in the next 5 years. With that in mind, which cannabis stock, HEXO Corp. (NYSE:HEXO) or OrganiGram Holdings Inc. (NASDAQ:OGI), is currently the better buy?.According to Mordor Intelligence, the cannabis market is expected to grow at a CAGR rate of 18.1% between 2021 and 2026. This solid growth rate is expected to be fueled by the proven medicinal usage of cannabis, legalization of cannabis at a higher pace, and further diversification of the cannabis products portfolio.
The cannabis market remains highly volatile amid investors’ concerns regarding negative profitability and rapid increase in competition in the given market. As a result, the ETFMG Alternative Harvest ETF (MJ) lost around 10% over the past month compared to SPDR S&P 500 Trust ETF (SPY) 3% gains over the same period.
Keeping that in mind, today we're going to analyze and compare two cannabis stocks: HEXO Corp. (HEXO) and OrganiGram Holdings Inc. (OGI). HEXO is headquartered in Kanata, Canada, and produces, markets, and sells cannabis in Canada. OGI, which is based in Moncton, Canada, produces and sells cannabis and offers a variety of cannabis-related products such as extracts, oils, beverages, and others.