Earlier this week, Charlotte's Web Holdings (TSX:CWEB) (OTCQX:CWBHF) announced that sales of its CBD-infused topicals and oils had begun across the US's Kroger (NYSE:KR) grocery chain. Shares spiked in response and four days on, they continue to do so. Charlotte's Web stock is currently up over 15% and selling for $20.32 USD.
Charlotte's Web Stock isn't Alone
It wasn't hard to understand why the market reacted so favorably to this news; the near-term plan is to roll out the products to a total of 1,350 stores in 22 states. All-in-all, the deal represents Charlotte’s Web Holdings' largest distribution agreement through a single retailer.
Kroger is now the fifth major retailer to carry Charlotte’s Web hemp-derived CBD products. Other major names include Target (NYSE:TGT) and Walmart (NYSE:WMT).
What About Veritas Farms?
But at the same time as Charlotte's Web's announcement, another brand had a similar cause for celebration. Veritas Farms (OTCQB:VFRM) also announced that its products will be on sale in 1,350 Kroger stores across the United States. On this news, VFRM stock jumped 22%. Shares still remain on an upward trend; currently, they sell for $1.59 USD, up 8.9%.
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Interestingly, it is worth noting the significant price difference between Charlotte's Web stock and Veritas Farms stock. The latter is currently valued 92% less than the former. And this might be an opportunity for investors.
Veritas shares a lot of similarities to Charlotte's Web Holdings in terms of distribution. The company has its products featured in over 4,500 retail locations across the US. This includes Kroger and CVS—two of CWEB's major distributors. And recently it added Bartell Drugs stores across Washington State to its list.
Further, one thing to consider is how much mainstream coverage Charlotte's Web gets for being the pioneer of hemp-derived CBD-infused products. Its success is definite, and analysts and media outlets have applauded it; however, there is every chance that Charlotte's Web stock is now moving into overvalued territory.
Whereas, for $1.59 CAD at present, Veritas Farms offers a similar product line and shares similar distribution footprints, which means an opportunity for growth. Comparatively, Veritas Farms would seem to be undervalued, and this is worth noting for investors looking for a CBD play.
What are your thoughts on this? Would you still pay the money for Charlotte's Web stock or does VFRM stock intrigue you?
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