Does Size Matter? These Two Small-Cap Cannabis Stocks Are Masters Of Cash Flow And Credit Management

C21 Investments CXXI and Vext Science VEXT have demonstrated notable financial performance, particularly in cash flow and credit stability. This is significant given the challenges faced by many larger cannabis companies.

Despite market caps of $29.98 million for Vext and $33.33 million for C21, they outperform larger peers like Tilray TLRY with a market cap of $1.53 billion, Curaleaf CURLF with a market cap of $3.10 billion, and Trulieve TCNNF with a market cap of $1.69 billion.

Comparative Analysis With Major Cannabis Stocks

The leveraged free Cash Flow Margin (LFCFM) indicates how efficiently a company converts its revenue into cash after covering operating expenses, debt interests and capital expenditures. C21 Investments has an LFCFM of 12.3%, while Vext Science has an LFCFM of 4.1%.

C21 Investments and Vext Science's performance metrics are compared with major cannabis stocks like Verano Holdings VRNOF, Green Thumb GTBIF, Trulieve, and Curaleaf Holdings.

For comparison, Verano Holdings has an LFCFM of 9.3% with a market cap of $2.81 billion, while Green Thumb Industries has an LFCFM of 6.0% and a market cap of $2.81 billion.

Trulieve Cannabis stands out with a LFCFM of 26.4% and a market cap of $1.69 billion, and Curaleaf Holdings has a LFCFM of 7.1% and a market cap of $3.10 billion.

Despite market caps Vext and C21, demonstrate strong cash flow margins, highlighting their financial efficiency in comparison to these larger peers.

Read Also: Is Tilray Really Worth $2B? Analysts See Path To $10B Market Opportunity

Year-Over-Year Performance

Both companies have shown improvements over the past year, according to The Dales Report. C21 Investments recorded an 18.9% LFCFM improvement, though it experienced a decline of 6.5% year-over-year. Vext Science improved by 8.9% year-over-year.

Credit Rankings

The Viridian Credit Tracker highlights C21 Investments and Vext Science as the top-ranked companies in the small-cap public cannabis sector.

C21 Investments holds the #2 position, driven by its low total liabilities to market cap ratio and solid cash flow metrics. Vext Science ranks #1, thanks to its liquidity and leverage scores.

C21 Investments and Vext Science's financial positions are critical in a sector where many companies struggle with debt and liquidity issues. C21's total liabilities to market cap ratio of 0.75 and Vext's ratio of 1.28 reflect their ability to manage debt.

Price Comparison Based On Benzinga Pro's Information

C21 Investments is priced at $0.2504, and Vext Science is priced at $0.16765. In comparison, Tilray is priced at $1.8497, Curaleaf Holdings at $4.18, and Trulieve Cannabis at $9.9. Tilray is approximately 637% more expensive than C21 and 1003% more expensive than Vext.

Curaleaf is approximately 1570% more expensive than C21 and 2393% more expensive than Vext. Trulieve is approximately 3851% more expensive than C21 and 5799% more expensive than Vext. These comparisons highlight the substantial price differences between these small-cap stocks and their larger, more established peers.

Read Next: What's The Net Worth Of These 4/20 Underdogs? Mid-Tier Cannabis Retailers & Cultivators Under The Spotlight

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