After a great start this year, many marijuana stocks have been hammered over the past couple of months. HEXO (NYSE: HEXO) is one of them, with its share price nearly 40% off its highs from earlier in 2019. On the other hand, Scotts Miracle-Gro (NYSE: SMG) is a notable exception, with shares continuing to steadily rise throughout the year.
Which is the better marijuana stock to buy now? Here's what you need to know about Scotts Miracle-Gro and HEXO.
The case for Scotts Miracle-Gro
Scotts Miracle-Gro focuses on two key markets: consumer lawn and garden products and supplies for the cannabis industry. You have to keep both of these markets in mind when considering investing in the stock.
The company made nearly 90% of its revenue in the second quarter from its consumer lawn and garden products business. This business rakes in the cash during warmer seasons when consumers pay attention to their lawns and gardens.
Because of this benefit from warmer weather, Scotts Miracle-Gro is a stock that could profit from moderate climate change. If temperatures rise earlier than normal and cold weather comes later than it typically does, sales of the company's consumer products should increase.
Scotts isn't dependent on climate change for growth, though. The company continues to launch new products, including a line of organic fertilizers, that fuel sales growth…