Here's Why Tilray Brands Has Become a Much Better Buy Than Canopy Growth

Core Viewpoint - Tilray Brands has been expanding its operations and improving its financial performance, positioning itself as a more favorable investment compared to Canopy Growth in the cannabis industry [2][4][5]. Group 1: Company Strategies - Tilray Brands has diversified its business by expanding into the alcohol industry, acquiring beverage brands, and becoming a top craft brewer in the U.S. market [4]. - Canopy Growth's strategy is heavily reliant on the potential legalization of cannabis in the U.S., creating a special purpose vehicle, Canopy USA, to hold positions in U.S.-based businesses [3]. Group 2: Financial Performance - Tilray reported an adjusted gross margin of 53% in its alcohol business, compared to 40% in cannabis, and reduced its operating loss to $16.5 million from $90 million year-over-year, with net revenue growing by 25% to $229.9 million [5]. - Canopy Growth's operating loss for the three-month period ended June 30 was CA$29.1 million ($21.2 million), an improvement from CA$54.7 million in the prior-year period, but its revenue declined by 14% to CA$75.8 million [6]. Group 3: Investment Outlook - Despite both companies experiencing significant stock declines over the past three years, Tilray's expansion into alcohol may provide better future results and widen the gap with Canopy Growth [7]. - While Tilray is seen as a better investment option, there are still uncertainties regarding its long-term profitability and growth sustainability [8].