Cannabis Vs. Coca-Cola And Marlboro: Marijuana Market Growth Outpaces Alcohol, Tobacco And CPG Giants

Nicolás Jose Rodriguez

June 25, 2024

Recent financial data from Beacon Securities compares key financial metrics across the alcohol, tobacco and cannabis industries, showing that cannabis is set to outpace major players like Coca-Cola (NYSE:KO), Marlboro (NYSE:MO), and Budweiser (NYSE:BUD) in market growth.

Financial Metrics

The EV/Sales ratio, which compares a company’s total value, including debt to its annual sales helps investors see the cost per dollar of sales. A lower EV/Sales ratio suggests a company might be undervalued, indicating a potential investment opportunity, while a higher ratio could imply overvaluation.

Beacon’s report shows the EV/Sales ratios for 2024 and 2025 as follows:

Alcohol: 3.6x and 3.4x
Tobacco: 4.0x and 3.9x
Consumer Packaged Goods (CPG): 3.4x and 3.3x
Canadian Licensed Producers (LP): 1.4x and 1.1x
U.S. Operators: 1.7x and 1.5x

In terms of the EV/EBITDA metric, which compares company value to earnings before interest, taxes, depreciation and amortization, lower numbers indicate better valuation relative to earnings. Here are the projections:

Alcohol: 11.0x for 2024 and 10.4x for 2025
Tobacco: 7.5x for 2024 and 7.4x for 2025
CPG: 15.5x for 2024 and 14.6x for 2025
Canadian Licensed Producers (LP): 17.1x for 2024 and 12.9x for 2025
U.S. Operators: 8.0x for 2024 and 6.2x for 2025

Growth Prospects

Meanwhile, the 2023-2025 EBITDA Compound Annual Growth Rate (CAGR) reveals differing growth expectations:

Alcohol: 6%
Tobacco: 1%
CPG: 6%
Canadian Licensed Producers (LP): 65%
U.S. Operators: 42%

This means that the cannabis industry, particularly U.S. operators and Canadian licensed producers, appears to be undervalued compared to the alcohol, tobacco and consumer packaged goods (CPG) sectors. Despite having significantly lower EV/Sales ratios, indicating they are currently valued lower per dollar of sales, cannabis companies show much higher growth potential as reflected in their impressive EBITDA growth rates.

Investors may be overlooking the rapid growth and future profitability of the cannabis sector, which is poised to outpace more established industries. This discrepancy suggests a potential investment opportunity in the cannabis market as its growth trajectory continues to rise.

These investing issues will be a hot topic at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates, and policymakers. Get your tickets now before prices go up by following this link.

Photo: AI-Generated Image.

Recommended

The 7th Trillion Dollar Company? - Ad

5 Wall Street Legends Just Bought This One Stock - Ad

Discover "U.S.'s New Money" Before Biden Wins - Ad

Former President Donald Trump has made a decision on his vice presidential nominee for the forthcoming election.

Trump Vs. Biden: New 2024 Election Poll Show Tie, But Here's Who Independent Voters Favor

A new 2024 election poll shows Donald Trump and Joe Biden tied. The poll shows inflation a key concern for voters moving forward.

Nvidia Is Pivoting to Solve Big Tech's $1 Trillion Problem

Nvidia Is Pivoting to Solve Big Tech's $1 Trillion Problem - Ad

Nvidia is the hottest company in the world thanks to its chip business. But here's the thing: Nvidia is making a massive $1 trillion pivot ... To solve AI's biggest problem. But it's not making this move by itself. A new set of companies are partnering with Nvidia in this trillion-dollar venture.

Top 3 Materials Stocks That May Explode In Q2

Here's the latest list of major oversold players in this sector, having an RSI near or below 30.

8 Large Cap Stocks That Outperformed Nvidia Over The Past Year

Nvidia surged 217.58% over the past year, 173.78% year-to-date. Here are eight large-cap stocks that outperformed it this past year.

The Tiny Tech Disrupting the $28.4B Hospital Infection Epidemic

The Tiny Tech Disrupting the $28.4B Hospital Infection Epidemic - Ad

Hospital-acquired infections are a silent killer, but one small company's nanotechnology could put an end to this costly crisis. Their proactive approach is turning heads in the healthcare industry.

Assault on US avocado inspectors in Mexican state led to suspension of inspections

MEXICO CITY (AP) — Two employees of the U.S. Agriculture Department were assaulted and temporarily held by assailants in the Mexican state of Michoacan, prompting the U.S. government , the U.S. ambassador to Mexico said Tuesday.

Cathie Wood's Ark Invest Acquires $7.3M Worth Of Shares In This Promising Netflix Competitor, Sells Off Coinbase Stock Amid Bitcoin Slump

On Wednesday, Cathie Wood-led Ark Invest made significant trades in Roku Inc (NASDAQ:ROKU) and Coinbase Global Inc (NASDAQ:COIN), amidst a volatile market.

Your Second Chance to Profit from AI

Your Second Chance to Profit from AI - Ad

If you missed out on Nvidia, don't worry. A 244-year-old pattern is about to trigger a $25.6 trillion AI surge... And send three overlooked stocks soaring 1,000%+

Trump Is Raising Enough Money To Wipe Out Biden's Once Significant Cash Advantage

The campaign of former President Donald Trump has seen a significant increase in donations, surpassing that of President Joe Biden, following Trump's felony conviction.

Bitcoin At 'Do-Or-Die' Level And Dogwifhat 'Just Looks Sh*t,' Says Top Trader: 'Can't Pin This On Me'

Bitcoin (CRYPTO: BTC) is currently at a critical juncture, according to a prominent crypto analyst.

The END of Joe Biden

The END of Joe Biden - Ad

One of my political operatives just handed me this story: "Weeks from now, Joe Biden's political career will go down in flames..." I didn't believe it either. But then he sent me the details... Believe it or not, this new scandal is bigger than anything related to Trump, the economy, foreign affairs or even Biden's sagging poll numbers.

Why Alibaba Stock Could Rally: Golden Cross In Sight

Alibaba is nearing a bullish Golden Cross, with strong AI and cloud ambitions, despite facing competition and bearish momentum. Solid business, attractive valuation, and potential uptrend signal future growth.

Dog fight! Joey Chestnut out of July 4 hot dog eating contest due to deal with rival brand

NEW YORK (AP) — America’s perennial hot dog swallowing champion won’t compete in this year’s Independence Day competition due to a contract dispute, organizers said Tuesday.

Claim Your Free "AI Income Playbook" Now!

Claim Your Free "AI Income Playbook" Now! - Ad

Income expert Marc Lichtenfeld has a special gift reserved just for you... It's his brand-new "AI Income Playbook" - and it's yours FREE! Inside, you'll discover how to tap the unlimited profit potential of artificial intelligence... With three explosive AI stocks that are handing out monster dividends like clockwork.

Boeing Insists On Adherence To Legal Agreement Post-737 MAX Crashes: Report

Boeing reportedly maintains it adhered to a 2021 agreement aimed at avoiding prosecution after the 737 MAX incidents, countering U.S. claims of non-compliance. The company's commitment to transparent engagement highlights its efforts to navigate legal complexities ahead of the Justice Department's crucial July 7 decision on extending prosecution terms.

Following Debate, Latest Poll Among Democrats Signals Major Trouble For Joe Biden â€” Although There's One Silver Lining

According to a recent poll, a majority of voters have expressed their belief that President Joe Biden should be replaced as the Democratic candidate.

This Election Shocker Could Be Worse Than Trump's Conviction

This Election Shocker Could Be Worse Than Trump's Conviction - Ad

Former advisor to the CIA, the Pentagon and the White House Jim Rickards just dropped this Trump election bombshell. For the sake of our country...I hope he's wrong. Because if he's right, you need to prepare now.

Shiba Inu, Ethereum, Chainlink Flash This 'Long-Term Bullish Signal' Despite Recent Drop

While the cryptocurrency market edged lower Thursday, several of the most popular coins showed a strong bullish indication. What Happened: Ethereum, Shiba Inu, and Chainlink endured significant losses during the day, as indicated below.

Snowline Gold's Valley Deposit Emerges As High-Grade Gold Resource In Yukon

Snowline Gold Corp announces highly anticipated initial assessment for Valley deposit in Yukon Territory, Canada, with significant potential for growth and future development.

After Conviction, There Could Be More Bad News for Trump

After Conviction, There Could Be More Bad News for Trump - Ad

Sprint great Michael Johnson launching 'Grand Slam Track' league with $100K first prizes

Sprinting great Michael Johnson is launching a track league that looks to assemble nearly 100 of the sport's top performers four times a year to compete for $12.6 million in prize money over its first season.

What's Going On With Taiwan Semi Stock On Wednesday?

Taiwan Semiconductor Industry to maintain global lead for 8-10 years, urged to ensure research security and develop grand strategy for changing supply chains.

The Mysterious Tale of "America's No. 1 Retirement Stock"

The Mysterious Tale of "America's No. 1 Retirement Stock" - Ad

This factory of 53,000 employees, in Burbank, CA, was camouflaged to look like a sleepy suburb (with the help of artists, set designers, and painters from nearby Hollywood movie studios). The mysterious company behind this disappearing act is now being called "America's No. 1 Retirement Stock".

Florida jury finds Chiquita Brands liable for Colombia deaths, must pay $38.3M to family members

Banana giant Chiquita Brands must pay $38.3 million to 16 family members of people killed during Colombia's long civil war by a violent right-wing paramilitary group funded by the company, a federal jury in Florida decided.

This week's televised debate is crucial for Biden and Trump â€” and for CNN as well

NEW YORK (AP) — Joe Biden and Donald Trump won't be alone at . Moderators Dana Bash and Jake Tapper of CNN will be on camera, too, and there's a lot on the line for their network as it fights for relevance in a changing media environment.

Weekend Trading: The Key to Conquer Volatility with Tim Sykes!

Weekend Trading: The Key to Conquer Volatility with Tim Sykes! - Ad

Discover the power of weekend trading with Tim Sykes' strategy. Turn market turbulence into your advantage. Trade with us and win in any market condition.

Capcom's Street Fighter Film Locked For 2026 Despite Director Shift

Sony Pictures announces the release date for the new Street Fighter movie. Get the updates on Capcom's video game adaptation

This Biopharma Stock Is Trading 23% Higher In Pre-Market After Wrapping Up $4M Public Offering

The public offering included 1,199,448 shares of common stock and pre-funded warrants to purchase up to 2,568,110 shares of common stock.

America's 'Silent Invasion' - Is Your Town in the Crosshairs?

America's 'Silent Invasion' - Is Your Town in the Crosshairs? - Ad

A silent invasion is happening all over America. It has nothing to do with the border but will end with even more disastrous results. Why? A faceless entity is coming by air, rail, port, and highway. What does it mean for you and your money? There's still time to prepare, but you must act today.

Bitcoin Fails To Get A Mention In The Fiery Trump-Biden Presidential Debate, Coins Themed Around The Two Tumble

The first 2024 presidential debate between incumbent Joe Biden and challenger Donald Trump turned out to be a dampener for cryptocurrency enthusiasts, with no mention of Bitcoin (CRYPTO: BTC) or significant policy issues surrounding what many anticipated to be a key election to

Scaramucci Says Democrats Have To 'Switch Up Their Strategy Immediately' After Biden's 'Brutal' Debate Performance: 'Trump Will Win On Nov. 5 Unless ...'

Scaramucci says time might be running out for Democrats if they want a fair chance of putting up a good show in the Nov. 5 election.

Wall Street Legend on Economy: "If you knew what I know, you'd be terrified too."

Wall Street Legend on Economy: "If you knew what I know, you'd be terrified too." - Ad

Something huge is headed to America's shores -- and it scares the hell out of Wall St. legend Louis Navellier. When it makes landfall, its impact will be more violent and more severe than any financial crisis we've ever seen... "No matter how prepared you think you are, you aren't prepared enough," he warns.

Is Altseason Around The Corner? Real Vision Analyst Reveals Key Indicators

Real Vision analyst Jamie Coutts on Thursday presented an optimistic outlook for high-quality altcoins, highlighting that the current setup appears increasingly favorable as global liquidity gears up for expansion.

Elon Musk Says Donald Trump Calls Him For No Reason: 'I Don't Know Why'

Tesla CEO Elon Musk unveiled details of his interactions with former President Donald Trump during the company's shareholder meeting.

Seven Unknown AI Stocks That Could Dominate the Next Six Years

Seven Unknown AI Stocks That Could Dominate the Next Six Years - Ad

The original "Magnificent Seven" stocks generated 16,800% over the last 20 years. But now a new set of AI stocks is set to take over. Alex Green dubs them "The Next Magnificent Seven." And he's arguing that just $1,000 in each could turn into more than $1 million in less than six years.

The fizz is gone: Atlanta's former Coca-Cola museum demolished for parking lot

ATLANTA (AP) — Once a shrine to the world's most popular soft drink, the building that housed the original World of Coca-Cola is going flat at the hands of Georgia's state government.

Nvidia Is 'At The Center' Of Something 'Really Big,' Says Expert As Jensen Huang-Led Chip Giant Beats Microsoft, Apple To Become World's Most Valuable Company

Nvidia's stock has been on a roll since the beginning of the year, outperforming the majority of the market.

This Billionaire's Final Masterpiece: "X-9840"

This Billionaire's Final Masterpiece: "X-9840" - Ad

The investment legend who predicted the rise of Bitcoin, Facebook and streaming services like Netflix... Just released the details on what he's calling Project X-9840. This business mogul is now set to revolutionize MONEY. He has said he could flip the switch "as early as mid 2024."

CDC Advisor Panel Recommends RSV Shots In US For People Above 75 Years, Analyst Says Decision Negative For GSK

The CDC's ACIP recommends RSV vaccines for adults 75+, and for those 60-74 with chronic conditions. GSK's Arexvy is approved for adults 50-59 at risk. A decision on adults 50-59 is pending further data.

Trending Now