TLRY Stock or CURLF Stock: Which Is the Better Long-Term Investment?

Tilray Stock & Curaleaf Stock Both Look Strong, But Which Is Stronger?

In 2021, we’ve seen the number of top marijuana stocks increase, not decrease. That’s because, as the legal marijuana industry grows, we’re seeing more and more opportunities for companies to take advantage of opening markets and higher potential revenue.

And among the top pot stocks, two of them stand out: Curaleaf Holdings Inc (CNSX:CURA, OTCMKTS:CURLF) and Tilray Inc (NASDAQ:TLRY). But which of these two marijuana stocks is the better pick for the long term?

For a long while, I would have said that CURLF stock is far and away the superior pick for long-term buy-and-hold investors (my personal investment philosophy for maximizing profits from the marijuana industry). But now, that question is a bit trickier to answer.

That’s because TLRY stock has made a lot of strides in recent months, with Tilray Inc’s string of acquisitions and future-focused investments.

Remember that Tilray stock came onto the scene by being the first marijuana company to go public on a major U.S. stock exchange. TLRY stock went soaring when it first hit the market, as investors were hyped to be able to gain exposure to the budding marijuana market via a major U.S. stock exchange.

While Canadian stock exchanges already had marijuana stocks available (and U.S. investors could get them over-the-counter), many American investors are only comfortable investing in stocks that are listed on major U.S. exchanges.

Combine the new accessibility of Tilray stock with the chance to get in on the ground floor with an initial public offering (IPO) in an industry that’s set to explode in value and—of course—many, many investors were looking to capitalize on the opportunity.

But that turned out to be a lot of smoke and not much fire. After an initial spike in price, TLRY stock went on a protracted downward trend for over a year.

Chart courtesy of StockCharts.com

That has since turned around after Tilray Inc acquired Aphria Inc, which sent Tilray stock on a strong upward trend.

The acquisition has dramatically boosted Tilray’s market cap, production capacity, and revenue, which many investors have responded positively to.

That makes sense. I’ve been consistent on what I believe is a winning strategy in the marijuana market: growth-oriented acquisitions and expansions designed to take advantage of the myriad opportunities in the future.

In my experience, this is the superior approach, versus fixating on profits in the present from the relatively meager current legal marijuana market (most of the global market remains fettered due to prohibition).

The rewards from TLRY stock, however, weren’t permanent. Much like Tilray stock’s first brush with hype that drove exponential gains, eventually there was a market correction.

Chart courtesy of StockCharts.com

But investors who bought shares of Tilray Inc in advance of its acquisition of Aphria Inc still came out on top. And while the correction did hurt the price of TLRY stock, at the end of the day, it’s in a very positive position, with the potential to see even more gains down the line.

That said, to me, Tilray stock is still an unproven commodity. It has shown that it’s capable of gaining traction through hype, but it has yet to show that it can sustain any sort of positive momentum.

And while I fully endorse the Aphria acquisition, that company had a number of issues before Tilray Inc merged with it.

Now that the two troubled pot companies have merged, there’s a lot of potential for gains. But there’s also a lot of potential for stagnation—or worse, descent—as the hype dies (or we don’t see tangible improvements, like significant revenue growth).

Curaleaf stock, by contrast, is in a very enviable position.

Chart courtesy of StockCharts.com

The largest U.S. marijuana company by market cap, Curaleaf Holdings Inc, is looking to bring in more than $1.0 billion in revenue in 2021. That would make it the first legal marijuana company to do so (if it is indeed first, as there is some competition).

What’s more, Curaleaf is situated in the U.S., where it could become one of the first companies to capitalize on federal marijuana legalization, which is certain to arrive in the coming years.

Even before pot is legalized at the federal level, Curaleaf Holdings Inc has the ability to expand in the U.S. as more and more states legalize marijuana.

Finally, in much the same way that Tilray stock benefited immensely from being on a major U.S. stock exchange, Curaleaf stock moving onto either the Nasdaq or the New York Stock Exchange would be a huge boon to the company. That would bring in an immense amount of capital that would drive share-price gains.

Those two situations would occur near-simultaneously, since the reason that CURLF stock is prohibited from being listed on the two major U.S. exchanges is that marijuana is illegal at the federal level. Nationwide pot legalization in the U.S. is just a matter of time, and with that in mind, I see huge value in Curaleaf stock.

So while I do think that TLRY stock has made enormous strides, CURLF stock is still my top marijuana stock.

Analyst Take

The marijuana industry is going to create many winners as it continues to grow.

But even as formerly weaker picks like Tilray stock continue to improve, no pot stock has been able to top Curaleaf stock yet. I believe that CURLF stock will be one of the best weed stocks for years to come as we approach federal marijuana legalization in the U.S.