The U.S. cannabis industry has been severely restricted in its ability to access banking services because of federal prohibition. Two Canadian bank heads say they too will steer clear of the sector until new laws are passed.

It’s indicative of the limitations facing U.S. pot companies even as their market values surge and they engage in large-scale M&A like Cresco Labs Inc.’s $820 million deal last week to acquire Origin House.

HEXO (NYSEMKT: HEXO) and Green Thumb Industries(NASDAQOTH: GTBIF) rank as two of the best-performing marijuana stocks so far this year. HEXO's share price has more than doubled in 2019, while Green Thumb is up more than 90%.

Of course, like the mutual fund disclosures state, past performance isn't necessarily indicative of future results. Which of these two hot marijuana stocks is the better pick now? Here's what you need to know to choose between HEXO and Green Thumb Industries.

The case for HEXO

If you had to summarize the argument for buying HEXO stock in three words, those words would probably be "Quebec" and "Molson Coors ."

This past week, Cresco Labs announced what will be the largest acquisition of a public company operating in the American cannabis industry to date, agreeing to buy CannaRoyalty (dba Origin House) in an all-stock transaction valued at $825 million.

Cresco Labs is a multi-state operator (MSO) based out of Chicago, and the acquisition will give them a strong position in California, where Origin House operates as a distributor, manufacturer, cultivator and branding company. Investors embraced the deal, sending the stock of Cresco Labs, which began trading in December, to an all-time high as it closed 10% higher on the week.

Investors who thought they were headed for a $100 share price for Canopy Growth (TSX:WEED)(NYSE:CGC) are feeling pretty bummed out at the moment.

After rallying back to the $70 range, coming up from the depths of a $30 share price, investors hoped this was a sign of things to come.

But in the last few weeks, shares have dropped down to below $60 a share, where they’ve pretty much stayed. The problem is, is this a fair value? Some analysts believe the stock is still overvalued, and with a recession at risk, perhaps shares could go even lower.

So far, marijuana stocks have fared pretty well overall this year. In the first quarter, the biggest winners included relatively smaller Canadian marijuana producers. But which marijuana stocks look like good picks to buy in Q2?

There are plenty of strong candidates. However, two marijuana stocks that I think look attractive right now are CannTrust Holdings (NYSE:CTST) and Innovative Industrial Properties (NYSE:IIPR). Here's what makes these two stocks stand out in my view.

The marijuana industry is currently on an unstoppable upward trajectory. Global marijuana production and sales are set to reach incredible new heights by 2022. While the industry isn’t without its risks, now is the perfect time to take advantage of the opportunity.

Though about half a dozen pot companies garner most of the attention from investors and analysts, a few small-cap firms are worth a mention. Let’s look at two marijuana firms that you should keep an eye on.

Can the Canadian marijuana stocks with market caps measured in the billions of dollars keep moving higher? Absolutely. It doesn't matter that they have astronomical valuations using traditional metrics. The global cannabis market is growing so rapidly that valuation measurements based on historical sales and earnings should be tossed out the window.

Some big Canadian marijuana stocks should be able to jump much higher and potentially do so more quickly than others, though. Which big Canadian marijuana stock has the most upside potential right now? I think it's none other than Aphria (NYSE:APHA).

The marijuana industry is absolutely blossoming before our eyes. This year alone, according to a research report released earlier this year by Arcview Market Research and BDS Analytics, global sales should soar by 38% to $16.9 billion. This roughly $4.7 billion year-over-year improvement is the result of sales picking up in the now recreationally legal Canada, supply chain issues resolving in California (the largest legal market in the world), and ongoing legalizations in both the U.S. and overseas markets.

You're probably not surprised a bit that Canadian marijuana stocks are hot again. Most of the stocks stank in the fourth quarter of 2018. It's been a much better story this year, though. At least a dozen Canadian marijuana stocks are up more than 50% year to date. Three stocks, however, have sailed past the rest of the pack.

Shares of Village Farms International(NASDAQ:VFF), Organigram Holdings (NASDAQOTH:OGRMF), and HEXO (NYSEMKT:HEXO) have skyrocketed 92% or more so far in 2019.

Following the opening of Canada's recreational adult-use marijuana market last October, top marijuana stocks could capture billions of dollars in sales as consumers shift their spending from the black market to licensed marijuana retailers. The potential to profit from pot is sparking a green rush of investment that has some marijuana growers already benefiting more than others.