pot market right now and have more than doubled in value over the past year, soundly outperforming the Horizons Marijuana Life Sciences ETF, which is up just 38% over the same period.
Trulieve is branching out of Florida where it has dominated and it still has a lot to prove outside of its home market.
The company is in 23 states, has more than 100 dispensaries, and recently partnered with Rolling Stone to help add to the popularity of its Select brand.
But even if Curaleaf does nothing, it is already at a $1 billion run rate in revenue, posting sales of $260 million during the first three months of 2021.
Last month, Curaleaf announced that it was launching its first medical marijuana products in Germany — the largest market in Europe.
Data from the Office of Medical Marijuana Use in Florida shows that for the week ended June 18, it had 85 of the 346 dispensing locations in the state — representing a quarter of all dispensaries and more than double the next company .
The acquisition could work well as both companies are profitable with Trulieve reporting an adjusted EBITDA profit of $91 million for the period ended March 31, while Harvest Health reported a profit of $27 million over the same timeframe.
It recently closed on its acquisition of West Virginia-based Solevo Wellness this month.
However, given the larger presence that Curaleaf has and the more plentiful opportunities it has ahead, I wouldn’t be surprised to see that gap shrink in the near future.
Although both stocks look like terrific buys, I give the edge to Curaleaf for its ability to manage such impressive growth without incurring significant losses.