Better Buy: Cara Therapeutics Inc. vs. GW Pharmaceuticals plc

Cara Therapeutics Inc. (NASDAQ: CARA), and GW Pharmaceuticals plc (NASDAQ: GWPH) often get lumped in with a stack of risky marijuana stocks, because both are developing drugs derived from the controversial plant. If this distinction has kept you from investing in either, you're missing out on two quality biotech stocks with futures that are completely removed from that of the federally controlled substance.

That doesn't mean these two biotechs aren't risky. Neither has an FDA-approved product, and if their lead candidates don't receive a stamp of approval, investors buying in now could suffer heavy losses. A green light from the regulator, on the other hand, could lead to tremendous gains over the long run.

Here's a closer look at challenges and opportunities they're facing to see which is a better stock to buy right now.

Source: Fool.com