Aurora Cannabis or Tilray Brands?

The legal marijuana market has been evolving rapidly since 2012, when Colorado and Washington became the first U.S. states to legalize cannabis for recreational adult use. 22 additional U.S. states, two U.S. territories, and the District of Columbia have since joined them. On the world stage, recreational cannabis is now legal in Canada, Uruguay, and Malta. Several more countries, like Germany, Switzerland, and Poland, are in the process of considering more liberal marijuana policies, possibly opening the door to widespread legalization in these countries.

With the political movement to legalize marijuana gaining momentum worldwide, it might be a good time to start loading up on high-quality marijuana stocks. Aurora Cannabis (NASDAQ: ACB) and Tilray Brands (NASDAQ: TLRY) are two of the most prominent names in the legal cannabis space today. Both companies originate in Canada, but they have ambitions to become global leaders in the cannabis industry. Which stock is the better buy? Let’s dig deeper to find out.

The case for Aurora Cannabis

Aurora Cannabis is Canada’s top medical marijuana producer by market share. It also has a large and growing footprint in 12 other areas, including high-value markets like Germany, Australia, and France. The company has also been investing heavily in research and development to create innovative and differentiated products that can help it build brand recognition and an economic moat. On the financial side of the ledger, Aurora’s management thinks the company is on track to become cash flow positive in calendar year 2024.

However, Wall Street isn’t convinced about the company’s near-term financial goals. Despite Aurora’s recent expansion into the profitable ornamental flowers segment, most analysts think the company remains a few years away from being cash flow positive consistently. The company also lacks a robust strategy to enter the high-value U.S. market upon the end of federal…