Better buy: APH or ACB?https://www.nasdaq.com/article/better-buy-aphria-inc-vs-aurora-cannabis-inc-cm1019907
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Valuation Aphria's market cap of around $3.2 billion is much smaller than Aurora's market cap of $5.9 billion. Based on each stock's price-to-sales ratio, Aphria is more attractively valued than Aurora is. However, both stocks appear to be absurdly expensive when looking at any commonly used valuation metric.
Another way of comparing these two stocks is the "bang for the buck" approach -- calculate how much you pay for each kilogram of production capacity. At Aphria's current market cap, investors would pay roughly $12,549 per kilogram of projected 2019 capacity. For Aurora, the figure is $10,439 per kilogram of projected 2019 capacity using the current market cap.
However, it's better to use enterprise value rather than market cap with this approach. Enterprise value factors in cash, short-term investments, and debt. Using enterprise values for each stock, you'd pay about the same amount per kilogram for Aphria as we saw in the previous figure. However, because Aurora's enterprise value of $3.76 billion is a lot lower than its market cap, you'd pay around $6,597 per kilogram of projected 2019 capacity for the stock."
This article was posted sunday at 1130am