The marijuana industry is expanding rapidly, and the global cannabis market is estimated to reach $149 billion in annual sales by 2031, growing at a compound annual growth rate of 20%. Although the majority of marijuana stocks are declining, Canadian cannabis company Aurora Cannabis and domestic marijuana player Trulieve Cannabis have solid fundamentals and long-term potential.

Aurora Cannabis gained popularity after Canada legalized medical cannabis in 2016 and went on an acquisition binge, straining its balance sheet. However, a demand-supply imbalance soon threatened Aurora’s top line in the Canadian market, and the stock dropped 99% in the last five years. Aurora closed the majority of its underperforming facilities to achieve positive adjusted EBITDA, which it hit in its second-quarter fiscal 2023. However, the company reported a net loss of CA$67 million in the quarter and has over CA$220 million in debt.

On the other hand, Trulieve Cannabis operates 125 stores in its home state of Florida and 56 additional stores across the nation, providing a broad range of cannabis products for both medical and recreational use. The company has been consistently profitable and ended the first quarter of 2023 with $195 million in cash, cash equivalents, and restricted cash. Trulieve’s statewide dominance will be useful when Florida legalizes recreational marijuana, which is still undergoing development with the 2024 legalization initiative.

The choice is clear: the best growth stock to buy now is Trulieve Cannabis. Although Trulieve must be careful not to burden its balance sheet like Aurora Cannabis did, it has the necessary financial stability to scale up. As more states legalize marijuana, Trulieve could have a wider market share as the industry headwinds fade. However, note that Trulieve is still a risky investment until the industry realizes its full potential. If investors can be patient and stomach the risks, it could be a better cannabis investment for the long haul.