If you’re a growth investor, the U.S. cannabis industry is one area you’ll want some exposure to. The U.S. pot market is going to grow at a rate of 18% per year (on average) and reach a value of $34.5 billion by 2025, according to cannabis research company BDSA. That’s more than five times the Canadian market’s projected value, which by 2025 will be worth approximately $6.1 billion. International sales are only set to climb to $6.5 billion five years from now.

Two companies that could stand to benefit from massive U.S. market growth are Trulieve Cannabis (OTC:TCNNF) and Harvest Health & Recreation (OTC:HRVSF). Trulieve recently announced its expansion into a fifth U.S. state with the acquisition of two Pennsylvania-based companies, while Harvest owns and operates over 30 retail locations across seven states. Let’s take a closer look at where these two cannabis companies are going (and where they’ve been) in order to determine which one is the better buy for cannabis investors today.

Can Trulieve’s domination continue outside of Florida?

Although its presence technically spans five states, Trulieve has achieved most of its success by focusing on its home market of Florida. On Sept. 22, the company announced the opening of its 61st dispensary and its 59th in Florida. With only two dispensary locations outside of the state, the company faces a big test with further expansion.

Marijuana leaves

Image source: Getty Images.

Trulieve’s recorded a profit in each of the past five quarters, and a big reason for that stability is its simplified business model. Many cannabis companies struggle to stay out of the red amid rapid growth. They often deploy strategies that include expansion into many different regions out of a desire to grow their presence and overall market share. 

Moving into more states will certainly boost Trulieve’s

Trulieve Cannabis (OTC: TCNNF) is sizzling hot. So far this year, its share price has soared nearly 60%. That’s a far better performance than any other major U.S. or Canadian cannabis producer, and it comes on the heels of Trulieve’s 47% gain last year. 

But such tremendous momentum raises the question of whether the company can keep the good times rolling. Is it too late to buy Trulieve Cannabis? Or is the marijuana stock poised to deliver more fantastic gains in the future?

"Now Entering Florida" road sign with a cannabis leaf painted on it.

Image source: Getty Images.

A growth machine

Perhaps the best argument for why it’s not too late to buy Trulieve is that the company continues to be a growth machine. Trulieve reported sales of $120.8 million in the second quarter, a 26% jump from the previous quarter and a record high for the company. 

This growth seems likely to continue, at least in the near term. Trulieve raised its full-year 2020 revenue guidance to between $465 million and $485 million. The midpoint of that range is nearly 22% higher than the midpoint of the company’s previous full-year revenue outlook. It’s also an 88% increase from Trulieve’s total revenue last year. 

Trulieve continues to dominate Florida’s medical cannabis market with a market share of close to 50%. It’s adding new stores in the Sunshine State, which could further cement its lead. At the same time, Trulieve is expanding outside of its home state. The company now has operations in four other states: California, Connecticut, Massachusetts, and Pennsylvania. 

Unlike many of its peers, Trulieve is already consistently profitable. It posted net income of $6.6 million in Q2. The company’s Q2 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $60.5 million, marking the tenth consecutive quarter of positive results. Trulieve even ranks as the second most profitable pot