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Better Marijuana Stock to Buy: Cresco Labs or Trulieve?

By Eric Volkman - Mar 28, 2021 at 11:00AM

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One company emerges as the clear victor in this battle of the marijuana retailers.

Two of the more popular marijuana stocks on the market these days are retail-focused companies Cresco Labs (CRLBF -2.35%) and Trulieve Cannabis (TCNNF -1.01%)

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.

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Stocks Mentioned

Cresco Labs Inc. Stock Quote
Cresco Labs Inc.
CRLBF
$3.74 (-2.35%) $0.09
Trulieve Cannabis Stock Quote
Trulieve Cannabis
TCNNF
$14.50 (-1.01%) $0.15

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