Cannabis companies, such as Sundial (SNDL) and cbdMD (NYSE:YCBD), have declined significantly from record highs, making them attractive to contrarian investors. Between these two stocks, which is a better investment today and which one should you avoid at current multiples?.Cannabis companies continue to wrestle with increasing competition, millions of dollars losses, shareholder dilution, and several other structural issues. This makes them high risk bets. However, the global cannabis market is projected to grow from $28 billion in 2021 to $197 billion in 2028, potentially making stocks in this industry interesting buy the dip candidates.
Shares of Sundial (SNDL) and cbdMD (YCBD) are significantly underperforming the markets in 2021, making them interesting potential investments for contrarian investors. SNDL is now down 95% from record highs and cbdMD has fallen over 70%.
Today I’ll compare SNDL and cbMD to determine which cannabis stock is currently the better investment.