Analysis: Is The Green Organic Dutchman (OTCQX:TGODF) Better Than Cronos Group, Inc. (NASDAQ:CRON)?


Marijuana stocks have got a lot of attention from investors in the United States over the past year or so and one of the battles that is all set to heat up is between Cronos Group Inc (TSE:CRON) (NASDAQ:CRON) and The Green Organic Dutchman (OTCQX:TGODF) (TSE:TGOD). Although it is true that the Green Organic Dutchman stock has performed better than Cronos Group, it is also necessary to keep in mind that the latter is a blue chip stock as far as marijuana stocks go. It is the best performing stock in its category ever and that is why, investors would need to look at the larger picture before choosing one from among these two Canadian marijuana stocks.

Argument for Cronos Group

One of the biggest factors in favour of Cronos Group is the fact that 45% of the company is now owned by tobacco behemoth Altria and that stake scale netted the company a handsome $1.8 billion. Such a war chest is always a positive for a company that is trying to grow quickly into a marijuana giant. Altria has been successful in building and maintaining highly successful brands across the world and the similarities between the two lines of businesses will work well for Cronos in the long term.

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While the Canadian marijuana market has helped the company in making money hands over fist, it has also expanded into territories in Europe, South America and Australia. Production is also expected to go up from 40,000 kilos a year to 117,000 kilos a year, through a joint venture.

Argument for The Green Organic Dutchman (TGOD)

On the other hand lies TGOD, a relatively much smaller company but one which has an enormous potential upside and perhaps the greatest ace up its sleeve is the fact that it could be producing more marijuana than Cronos by next year. Currently, it produces 65,000 kilos marijuana per year but the production capabilities are going to be turbo charged soon and TGOD could be churning out 219,000 kilos of product by next year. That will dwarf the production capabilities of Cronos.

In addition to that, TGOD is also going to invest in cannabis infused beverages and edibles in Canada in a bit way. The company has announced that around 40,000 kilos of its produce is going to be allocated towards those initiatives. Last but not the least, it has also ventured overseas with partnerships in Mexico, Denmark, Jamaica and Poland.


At this point in time, simply due to its higher production capacity, TGODF stock is a better pick than Cronos and considering the fact that its market cap is around 15% that of the former, it has a much bigger upside. However, in the longer term, Cronos’ partnership with Altria will probably win the day.