Better Cannabis Stock to Buy Right Now: Canopy Growth or Tilray Brands?

Tilray Brands (TLRY) and Canopy Growth (CGC) are two of the biggest cannabis retailers in Canada. Both stocks have struggled this year, with Canopy's shares down over 12% and Tilray's down more than 49%. While cannabis stocks have been volatile, investors should be prepared to take risks, especially in Canadian companies that may have less growth potential than U.S.-based companies.

In 2009, a "Double Down" signal flashed for Nvidia, a little-known chipmaker. The same "Total Conviction" signal is now flashing for Tilray, which is only 1/100th the size of Nvidia. Despite price drops, Tilray is showing revenue growth, with a 25% increase in net revenue to $281.7 million in Q4 2026 and a 32% gross margin. Tilray's diverse portfolio, including U.S.-based alcohol brands, provides stable cash flow, while its beverage net revenue was up 60.9% year over year at $105.6 million.

Canopy Growth also reported growth, with a 13% increase in first-quarter fiscal 2027 revenue to CA$81.2 million, and a 27% gross margin improvement to 27%. However, its earnings per share (EPS) loss narrowed to CA$0.03 from CA$0.24 in Q1 2026. While Canopy has less net debt than Tilray, the company is still struggling to achieve sustainable positive EBITDA. Tilray, with its higher adjusted EBITDA and lower price-to-sales ratio, appears to be the better buy right now among the two.