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Is Aurora Cannabis Inc (NYSE:ACB) A Better Bet Than Canopy Growth Corp (NYSE:CGC)?

Is Aurora Cannabis Inc (NYSE:ACB) A Better Bet Than Canopy Growth Corp (NYSE:CGC)?
Written by
Alex Carlson
Published on
March 18, 2019
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InsidrFinancial

One of the biggest, if not the biggest, debates among cannabis investors is which is the best bet long-term? Which company will make investors the most money and become the dominant cannabis company in the world. Most investors go with Canopy Growth Corp (NYSE:CGC) because of its sheer size and first-mover advantage in many countries. While we have touted Canopy for a long time and seen the stock deliver triple-digit returns for our subscribers, we think it's time to pay closer attention to Aurora Cannabis Inc (NYSE:ACB). CGC Daily Chart ACB Daily ChartBackgroundFirst up, a little background info for those that are not familiar with Aurora.Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 500,000 kg per annum and sales and operations in 23 countries across five continents, Aurora is one of the world’s largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution.In addition to the Company’s rapid organic growth and strong execution on strategic M&A, which to date includes 15 wholly owned subsidiary companies – MedReleaf, CanvasRX, Peloton Pharmaceutical, Aurora Deutschland, H2 Biopharma, Urban Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics (CMMDF), Anandia Labs, HotHouse Consulting, MED Colombia, Agropro, Borela, and ICC Labs – Aurora is distinguished by its reputation as a partner and employer of choice in the global cannabis sector, having invested in and established strategic partnerships with a range of leading innovators, including: Radient Technologies Inc. (TSXV: RTI), Hempco Food and Fiber Inc. (TSXV: HEMP), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), Capcium Inc. (private), Evio Beauty Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC: CTTH), Alcanna Inc. (TSX: CLIQ), and High Tide Inc (CSE:HITI).Peltz news

Aurora Cannabis has engaged billionaire Nelson Peltz to advise it on potential partnerships and global expansion plans. Mr. Peltz is CEO and Founding Partner of Trian Fund Management, LP and currently serves as non-executive Chairman of The Wendy's Company and a director at Procter & Gamble. Mr. Peltz and Aurora will work collaboratively and strategically to explore potential partnerships that would be the optimal strategic fit for successful entry into each of Aurora's contemplated market segments. Mr. Peltz will also advise on the Company's global expansion strategy. Nelson Peltz said:

"I believe Aurora has a solid execution track record, is strongly differentiated from its peers, has achieved integration throughout the value chain and is poised to go to the next level across a range of industry verticals. I also believe that Canadian licensed producers, and Aurora, in particular, are well positioned to lead in the development of the international cannabis industry as regulations evolve, with a strong, globally replicable operating model. I look forward to working with Terry and the extended Aurora team to evaluate its many operational and strategic opportunities, including potential engagement with mature players in consumer and other market segments."

Why Peltz mattersJefferies analyst Owen Bennett says strategic advisor Nelson Peltz, with his skills maximizing profits and efficient asset allocation, can solve the biggest problem at Aurora Cannabis, achieving profitable growth. It is also in Peltz's benefit as he was granted options to purchase 19,961,754 common shares in the Company at a price CAD$10.34 per share. Peltz only makes money if the stock goes up. Peltz will be helpful in bringing in strategic partners and help Aurora make money off all the acquisitions the company has done over the last few years. Aurora has one of the largest investment portfolios among all cannabis companies.Bottom lineAt this time, we at Insider Financial believe that Aurora Cannabis is a better bet for investors than Canopy Growth. For one, it is much more likely and easier than a $9 stock will double faster than a $45 stock. Second, Nelson Peltz became a billionaire by understanding and investing in consumer goods companies. Aurora is effectively a consumer goods company looking to differentiate itself from its peers and get consumers to purchase Aurora Cannabis. Peltz brings a lot to the table and he could have gotten involved with any cannabis company, yet he chose Aurora. While we are bullish on both companies and the cannabis sector in general, Aurora right now is a top pick.We will be updating our subscribers as soon as we know more. For the latest updates on cannabis stocks, sign up below!Disclosure: We have no position in ACB or CGC at the time of writing and have not been compensated for this article.Photo by Drew Rae from Pexels

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