Motley Fool thinks Aurora a better but?! What's the fool up to again? Better Buy: Aphria Inc vs. Aurora Cannabis Inc. Which Canadian marijuana stock wins in a head-to-head matchup? Keith Speights (TMFFishBiz) Sep 9, 2018 at 11:44AM Canadian marijuana stocks have been on a tear in recent weeks. But while Aphria Inc. (NASDAQOTH:APHQF) and Aurora Cannabis Inc. (NASDAQOTH:ACBFF) have soared over the past month, both stocks still are lower than their levels at the beginning of 2018. Aphria stock has performed better than Aurora so far this year and over the last few weeks. But is Aphria the better pick now, or is Aurora primed to surge past its rival? There are three primary things to evaluate when comparing Canadian marijuana stocks. The first is how well each company is positioned for the recreational cannabis market scheduled to open in Canada next month. The second is how well each company is positioned in the global medical cannabis market. And the third is how the stocks' valuations compare. Here's what you need to know about how Aphria and Aurora Cannabis stack up against each other in these three key areas. Marijuana buds and CBD oil bottle on top of red Canadian maple leaf cut-out IMAGE SOURCE: GETTY IMAGES. Canadian recreational cannabis market The two major keys to success in the Canadian recreational cannabis market will be production capacity and distribution channels. Aphria only can grow 35,000 kilograms per year right now. However, the company should have an annual production capacity of 255,000 kilograms next year. Aurora Cannabis expects to be able to produce 140,000 kilograms by the end of 2018. By the end of next year, though, the company's annual production capacity will increase to more than 570,000 kilograms. But what about distribution channels? Aphria teamed up with Great North Distributors, a subsidiary of North America's largest wine and spirits distributor, Southern Glazer's. Great North will be the exclusive distributor of Aphria's recreational cannabis products throughout Canada. Aphria also has signed supply agreements for the recreational cannabis market with eight Canadian provinces and territories. Aurora Cannabis is partnering with large Canadian liquor-store chain Alcanna to open retail cannabis stores throughout the provinces and territories that have retail regulations finalized. As part of the deal, Aurora made a significant investment in Alcanna. Like Aphria, Aurora also has landed multiple supply agreements with Canadian provinces and territories. One wild card with respect to the recreational cannabis market for both Aphria and Aurora Cannabis is the potential to partner with a major alcoholic beverage company to develop cannabis-infused beverages. Corona beer distributor Constellation Brands recently invested $4 billion in Canopy Growth. Diageo, known for products like Crown Royal whiskey and Guinness beer, is reportedly in discussions with several Canadian marijuana growers about a partnership. Aphria and Aurora could be among the top candidates to land a big partner. Global medical cannabis market Aphria's acquisition of Nuuvera earlier this year gave the company a foothold in several international medical cannabis markets. The most important of these markets is Germany, which legalized medical cannabis in 2017. Aphria CEO Vic Neufeld stated during the company's Q4 conference call last month that he feels "very, very confident" about Aphria's chances for success in the German market. So far, though, Aphria's international sales have been minimal. Aurora Cannabis also appears to be well-positioned in Germany with its Pedanios subsidiary. The company reported European revenue of over 2.3 million Canadian dollars in its quarter ending March 31, 2018. Aurora's production facility in Denmark should give it an advantage as more European markets open up. In addition, the company is looking to grow sales in other international markets, including Australia and Brazil.