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

Tilray Brands (NASDAQ: TLRY) and Canopy Growth (NASDAQ: CGC) are two of the largest cannabis retailers in Canada. Neither stock has fared well this year, with Canopy's shares down by more than 12% and Tilray's by more than 49%.

Cannabis stocks have been a wild ride for investors, so people should be willing to take risks if they're investing in these stocks, particularly Canadian companies that may have less upside than U.S.-based ones.

However, the decline in their shares belies the revenue growth both companies are showing. Let's take a look at which stock is the better buy right now.

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Tilray's greater diversity gives it an edge

Tilray calls itself a global lifestyle and consumer-packaged goods company, with cannabis as only one of its products. The company owns more than 40 brands, including craft beverages, hemp-based foods, and, of course, cannabis. It owns several U.S.-based alcohol brands, including SweetWater Brewing, Breckenridge Distillery, and some former Anheuser-Busch craft brands.

This provides the company with more stable cash flow, particularly during periods of price compression in Canada's cannabis market. In the fourth quarter, the company reported net revenue of $281.7 million, up 25% year over year, while gross margin was 32%, up from 30% in the same quarter a year ago. The company saw those gains despite somewhat laggard cannabis numbers, with cannabis net revenue up 5% year over year, to $71.5 million. Meanwhile, beverage net revenue was $105.6 million, up 60.9% year over year.

Tilray isn't profitable, but it did reduce its earnings per share (EPS) loss from $13.01 in Q4 2025 to $0.43 in Q4 2026.

Canopy Growth also saw growth, but almost all of it was from cannabis, though the company has some diversity, with sales in Europe and THC beverages. It reported fiscal 2027 first-quarter revenue of CA$81.2 million, up 13% year over year. Gross margin was 27%, up from 25% in Q1 a year ago. It also improved its EPS loss to CA$0.03, compared to CA$0.24 in Q1 2026.

Tilray is better-positioned for growth

Canopy reported total debt of CA$415.3 million, equivalent to $299.7 million. Tilray has roughly $733 million in debt. Canopy's total debt figure appears lower on paper due to massive debt-for-equity swaps, but Tilray holds very little net debt (roughly $700,000), while Canopy has about CA$126 million in net debt, the equivalent of $94 million.

That difference in net debt allows Tilray to pursue additional acquisitions, whereas Canopy would have to further dilute its stock to buy another company.

Tilray is more profitable

Though neither company is profitable, Tilray is much closer to profitability. It had $61.1 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2026, up 11%, and anticipates $68 million to $75 million in 2027 full-year adjusted EBITDA. Its broader beverage and medical distribution networks provide baseline stability in operational margins.

Canopy Growth continues to have adjusted EBITDA losses, dropping CAD$3.2 million in Q1 of fiscal 2027. While Canopy has narrowed these losses significantly through aggressive restructuring and headcount cuts, it is still striving to reach sustainable positive EBITDA.

The choice has become easier

Though each stock has seen significant volatility and poses risks, Tilray's price drop has made it a better buy. It is trading at roughly one-third of Canopy's price-to-sales ratio and has a lot more room to rise if it continues to show progress.

James Halley has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.