Some marijuana stocks are hot; some are not. Organigram Holdings Inc. (NASDAQOTH:OGRMF) is a good example of the former group. Its share price has soared more than 70% so far in 2018. Village Farms International, Inc. (NASDAQOTH:VFFIF), on the other hand, fits into the latter category, with its stock down almost 20% year to date.

Both of these Canadian marijuana growers could see tremendous growth soon. But which is the better stock for investors to buy now? Here's how Organigram and Village Farms stack up against each other.

Red Canadian maple leaf surrounded by marijuana leaves.

Image source: Getty Images.

Production capacity

Organigram's current annual production capacity stands at 36,000 kilograms. However, the company's expansion efforts will boost that level to 113,000 kilograms by October 2019. Assuming all goes according to plan for reaching that threshold, Organigram should rank No. 7 among Canadian marijuana growers in terms of production capacity

Village Farms teamed up with Emerald Health Therapeutics last year to form a joint venture, Pure Sunfarms. This joint venture expects to have an annual production capacity of up to 8,000 kilograms this year. Pure Sunfarms plans, though, to increase its capacity to 75,000 kilograms by 2020. 

Readiness for Canadian recreational marijuana market

Organigram has supply agreements for the recreational marijuana market with seven provinces: Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island. In addition, the company signed an agreement with Canopy Growth to supply Canopy's retail operations in Newfoundland and Labrador.

Neither Village Farms nor Pure Sunfarms has announced any supply agreements with Canadian provinces or territories. However, Emerald Health Therapeutics, the company's joint venture partner for Pure Sunfarms, did secure supply agreements with the provinces of British Columbia, Ontario, and Newfoundland and Labrador.

International presence

Organigram claims two key partnerships that give it a foot in the door in international medical marijuana markets. The company teamed up with Alpha-Cannabis to export medical cannabis to Germany. With the largest population in the European Union, Germany ranks as the most important international marijuana market outside of North America. Organigram also linked up with CannaTrek Medical to supply medical cannabis to Australia.

In addition, Organigram recently announced a strategic investment in Eviana Health Corporation. Eviana owns cannabidiol (CBD) and hemp production operations in Europe.

Village Farms' primary business continues to be marketing greenhouse tomatoes, peppers, and other produce products. This business has an international presence, with the company selling its products in the U.S. and Mexico, as well as in Canada. Village Farms' Pure Sunfarms joint venture, however, hasn't announced any international operations or partnerships in the cannabis industry thus far. 

Financial position

Organigram made 3.7 million in Canadian dollars in its last quarter. The company reported CA$155.8 million in cash and cash equivalents as of May 31, 2018, with debt of CA$98 million. 

Village Farms made US$42 million in its latest quarter. It reported cash and cash equivalents totaling CA$17.1 million, with long-term debt of CA$49.7 million.

Valuation

Organigram's market cap currently stands at a little under $700 million. That gives the stock a price-to-sales ratio of around 75.

Village Farms' market cap is around $217 million. The stock's price-to-sales multiple is approximately 1.4.

Better marijuana stock

Village Farms wins in two of the categories -- financial position and valuation. However, both of those categories are based on where each of the companies have been and not where they could be going. It's also important to note that Village Farms' revenue and cash were generated from its produce business and not its Pure Sunfarms joint venture.

Organigram beats Village Farms in what I think are the more critical forward-looking categories. In my view, Organigram has better growth prospects, thanks to its higher production capacity, supply agreements with Canadian provinces, and its international partnerships. Overall, I see Organigram as the better marijuana stock.

The company should enjoy a surge in revenue very soon as the recreational marijuana market opens in Canada. Over the long run, though, Organigram's ability to flourish in international medical marijuana markets is likely to be more important to its future. 

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.