Medical Marijuana Vs CV Sciences Stock

Medical Marijuana Vs CV Sciences Stock: If you’re having trouble keeping up with the ever-growing and ever-changing list of hemp entrepreneurs and investors these days, count yourself in good company.

Since the passage of the 2018 Farm Bill that legalized hemp in the United States, the rush of capital into the hemp industry has been, to say the least, staggering.

For clarity’s sake, hemp is the product needed to manufacture CBD oil; and CBD oil is proving to be a booming billion-dollar industry for both the retail and pharma markets.

The upside, this market is in its infancy. There is still a tremendous amount of growth potential.

The downside? Everybody is aware of that fact, and the industry has an overabundance of investors and entrepreneurs jockeying for a piece of the pie.

In an industry awash with capital, investors, and entrepreneurs, two companies seem to be well-positioned and ready to grow. These companies are moving lockstep with the growth of the hemp and CBD markets. The companies? Medical Marijuana [Other OTC: MJNA] and CV Sciences [Other OTC: CVSI].

Is Medical Marijuana Stock A Buy?

Medical Marijuana can lay claim to the fact that they were first to market. However, just as with all the dot.com companies of the late ’90s, being first to market is not a guarantee of success.

Medical Marijuana [Other OTC: MJNA], founded in 2003, is U.S. based, but operates in Europe, Brazil, and Mexico and was the first to market and sell a medical cannabis product. As a result, much of Medical Marijuana’s reported $50 million in revenue over the last 12 months came from international markets.

The company’s most popular product, Real Scientific Hemp Oil (RSHO) has been the catalyst for much of its growth.

Medical Marijuana is, however, a diversified company with significant ownership in several related businesses: CanChew Biotechnologies, KannaLife Sciences, and Axim Biotechnologies [AXIM].

The company is genuinely well-positioned to reap benefits from the U.S. legalization of hemp with multiple products. This fact alone should open the door for increased domestic sales.

Having partnered with companies that penetrate both the consumer and drug markets, Medical Marijuana [Other OTC: MJNA] could benefit by generating revenue from two very significant segments of the economy: consumer supplements and pharmaceutical grade drugs made from CBD.

The only problem?

Medical Marijuana’s stock has been, and for the near future, looks to be, a less than stellar investment. Although the company has seen favorable revenue growth, the overall value of the stock has experienced a decline.

Couple that with the fact that MJNA has been unable to record a profit, and it could create wariness in investors.

Should You Invest in CV Sciences Stock?

CV Sciences, based in Las Vegas Nevada, operates in a way that closely resembles that of Medical Marijuana [NASDAQOTH: MJNA]; CV Sciences [Other OTC: CVSI] is an international business, the company is diversified, and has a popular retail product known as PlusCBD oil.

CV Sciences PlusCBD oil is marketed as a food supplement, opening the door to sales in all 50 states thanks to the 2018 Farm Bill. As with most CBD products, PlusCBD is marketed to aid with anxiety, depression, pain, and inflammation.

CV Sciences [Other OTC: CVSI] has partnered with CVS and Kroger to provide national distribution channels for this and other CV Sciences products. The partnerships should increase CV Science’s market penetration dramatically and place them in a front runner, national position.

There is another market the company has pursued aggressively: CBD-based pharmaceutical drugs.

The most popular of these efforts is CVSI-007, a patent-pending drug aimed at alleviating tobacco addiction. Although the process to patent approval hasn’t been a smooth one, the market potential for the company that is first-to-market with pharma-grade CBD drugs to treat or alleviate addictions is an enormous opportunity.

The CBD drug market, coupled with the retail consumer market, may give CV Sciences the edge over many other, less diversified competitors.

At a glance, CV Sciences [Other OTC: CVSI] and Medial Marijuana share many of the same characteristics. CV Sciences, however, has a profitable track record, a healthy balance sheet, and has already begun extensive penetration of the U.S. market.

Medical Marijuana Vs CV Sciences Stock: The Bottom Line

The hemp industry received a tremendous shot in the arm when the U.S. passed the Farm Bill in 2018, and there are a plethora of opportunities if you want to capitalize on this burgeoning market.

Market entry of companies like CVS Pharmacy, Kroger, Altria Phillip Morris, and several other national names would indicate that not only are the companies that produce hemp and CBD products going to grow, the retail industry is going to see phenomenal growth as well.

Big Pharma’s entry into researching and developing the potential for drug-related products is a sign that the healthcare industry could benefit as well.

Investing in CBD market stocks is for the hearty and risk-tolerant individual. Yes, these companies are in a market that as only just begun to tap its potential. However, these companies are traded as OTC stock. 2019 may bring greater opportunity, as well as mergers and acquisitions. It most certainly will bring winners and losers.

Both CV Sciences [Other OTC: CVSI] and Medical Marijuana [Other OTC: MJNA] are well-positioned for growth; both companies are diversified in their products and holdings.

Ultimately, however, CV Sciences stock performance, revenue growth, and areas of diversification in the hemp industry point to greater potential for continued success.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.