Despite all the uncertainty and volatility, now may be the ideal time to check out some of the biggest marijuana stocks.

These companies have experienced rapid growth as more states have legalized cannabis for medicinal and recreational use. And the popularity of this industry will only grow from here.

One thing to look for when choosing marijuana stocks is the strength of each company’s management team. In addition, you should consider factors like market share and business lines when evaluating different stocks.

These metrics will tell you how well-positioned a company is to succeed in the current market conditions and what growth potential it may have in the future.

Ultimately, picking a winning marijuana stock requires carefully balancing these different factors. So do your research, choose wisely, and don’t be afraid to take some risks along the way.

On this list, we’ve chosen three of the biggest marijuana stocks. These are ranked from the best to the worst, giving you an idea of where to invest your funds in the future.

Innovative Industrial Properties (IIPR)

Innovative Industrial Properties (NYSE:IIPR) is a unique REIT that stands out from the crowd of other marijuana stocks.

With its focus on leasing properties associated with cannabis, Innovative Industrial Properties has emerged as one of the top picks for those who want strong returns in the ever-expanding marijuana market but do not want to take on significant risk.

Since the company is REIT, it is bound to pay 90% of its earnings to dividends in exchange for tax-exempt status. The REIT stands out for investors seeking a safe income play in the cannabis industry.

IIPR raised its quarterly payout to $1.80 per share, which represents a 2.9% increase from the previous dividend of $1.75.

Innovative Industrial Properties is an excellent choice for anyone seeking to benefit from the explosive growth of marijuana stocks. It provides exposure to the growing cannabis industry alongside stable income.

Tilray Brands (TLRY)

Tilray (NASDAQ:TLRY) has been a volatile stock since merging with Aphria in May 2021.

Over the past year alone, the share price slid by more than 66%. Despite Tilray’s role as one of Canada’s largest licensed cannabis producers, Tilray Brands has struggled to keep up with the industry’s rapid growth.

Many analysts attribute Tilray Brands’ struggles to managing the massive merger with Aphria. Regardless of Tilray Brands’ challenges, however, many analysts predict that the company will ultimately return and reclaim its position as a leader in Canada’s booming cannabis sector.

As part of CEO Irwin Simon’s plan to make Tilray a leader in the rapidly growing cannabis industry, the company has made several strategic acquisitions over the past few years.

In December 2021, Tilray made a major move by acquiring Breckenridge Distillery for $103 million. Founded in 2008, this premium spirits maker built a strong reputation in its home state of Colorado. Its beloved bourbon whiskey and other high-quality spirits accounted for about 85% of its revenue.

This makes it an appealing addition to Tilray’s growing portfolio of cannabis brands.

Despite the issues it faces, Tilray reported its 14th straight quarter of positive adjusted EBITDA in the first quarter that ended Aug. 30. Once it gets all of its ducks in a row, the company will emerge as a much stronger enterprise.

SNDL (SNDL)

SNDL (NASDAQ:SNDL), formerly known as Sundial Growers, has had an eventful few years as a cannabis company.

Throughout most of 2020, Sundial was focused on the wholesale market, trying to make a profit by supplying retailers and other cannabis businesses with high-quality cannabis products. However, it quickly became clear that this was not a sustainable business model.

In 2021, the company boldly decided to shift its focus toward retail cannabis. But this transition proved challenging as well. Reddit investors gave it a new lease on life by pushing the stock up. Consequently, SNDL issued massive stock to pay down debt and transform itself.

With the massive accumulated cash, SNDL made a smart move by purchasing Canadian liquor retailer Alcanna. Due to the acquisition, the company has experienced sharp topline growth. SNDL is making more from Alcanna than its cannabis products.

Despite the cannabis company’s recent successes in gaining a foothold in the burgeoning liquor industry, it is facing mounting criticism. Critics argue that Sundial’s extensive investments in alcohol and other outside industries may be distracting the company from thriving in any particular area.

In addition, SNDL issues a massive amount of equity for financing its operations. That will continue to weigh down the company’s EPS figures for the next several quarters. All these factors lead one to believe the company is perhaps the worst pick among the biggest marijuana stocks.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.