Longtime Fool contributor Eric Volkman believes one is a better investment than the other, and in this Motley Fool Live video segment recorded on March 12, he explains why to healthcare and cannabis bureau chief Corinne Cardina.
Corrine Cardina: we got a good Slido question that's kind of about a "this or that stock." So, RES asked, ''Would love to hear your thoughts on Trulieve versus Cresco Labs, which is the better multi-state operator (MSO)? Buy both or is one favored over the other? Do their footholds, in their respective states, equate to moats?"
That's a great question. What do you think, Eric?
Eric Volkman: I'll take the last question first. No, I don't think their footholds equate to moats. Trulieve does have a commanding lead in its market, its share is something like 45%. It is really big and there they have an admirably big network. Does that equate to a moat? No. Moat is a strong word, and there's competitors. A state like Florida, as largely as it is and as populous as it is, is going to have to be fairly liberal with its licensing. So, no.
But I still think they will maintain a commanding lead. If not 45%, it's still going to be very muscular.
Cresco Labs doesn't have quite that advantage in Illinois, because Illinois kind of rolled out in a very splashy way with a lot of licensing. If I had to choose between the two, I would choose Cresco because they have a bigger national footprint, and in some very good and very promising markets. While Trulieve is very strong in Florida, it's still very much at best a regional play.