There isn’t a such difficulty as a such downside as a getting spherical it: Tesla (NASDAQ:TSLA) has been an insanely good funding, producing giant returns for patrons keen to carry via all of the noise and distractions, to not stage out the potential implications of a world recession. Furthermore, it isn’t merely hype: Tesla is an environment good enterprise that makes revolutionary and compelling autos that people love.Its technological head begin in battery tech and vertical integration in battery manufacturing have furthermore confirmed giant benefits, to not stage out the potential for its renewable vitality merchandise, and the seems of autonomous-vehicle suppliers which may ship future earnings.Picture present: Getty Footage.I’m not a Tesla bear. It’s a unbelievable firm that has modified the world of autos for the higher, and completely. Nonetheless I think about there are greater stocks to purchase acceptable now.One amongst my favorites is Brookfield Renewable (NYSE:BEP) (NYSE:BEPC). It may not have provided Tesla-level returns over the previous couple of years, nonetheless it’s been a market-beating funding in its non-public acceptable, and has some very actual benefits making it the higher funding. Listed beneath are two predominant causes.1. Predicting future returnsAs heaps as Tesla has been a worthwhile funding, there isn’t any getting spherical it: An infinite quantity of the stock constructive elements acquired relevant proper appropriate correct proper right here from the stock’s valuation rising, not elementary enchancment in its outcomes.At this writing, Tesla shares now commerce for virtually 17 occasions product product product gross sales. That’s additional per the type of price-to-sales (P/S) fairly a number of you’d depend on a high-growth, high-margin software program program program program program program program stock to earn — not shares of a producer. At this writing, Tesla trades for the following valuation than a considerable quantity of of most actually primarily principally principally primarily essentially the most worthwhile and helpful high-margin tech stocks on this planet:TSLA PS Ratio data by YCharts.The massive takeaway is that Tesla’s returns have hinged all by the market rising how heaps it values the stock, not enhancements in its underlying enterprise outcomes. Tesla has moved from in the hunt for and selling on the underside P/S fairly a number of to — by far — the very best.Relevant proper appropriate correct proper right here is the rub: Even when it brings higher-margin autonomous suppliers into the combo lastly, Tesla acquired’t ever be the kind of enterprise that earns 50% or greater gross margins. Of the businesses on this choices, Amazon (NASDAQ:AMZN) may be primarily most actually primarily principally principally primarily essentially the most related comparability: one with a enterprise that may be a combination of suppliers and bodily merchandise. Due to chart above reveals, Tesla trades at an infinite premium, contemplating the place its future margins usually usually are inclined to fall.Now let’s strive that to Brookfield Renewable:TSLA PS Ratio data by YCharts.What does this inform us? In brief, Brookfield Renewable generates fairly sturdy margins of its non-public, nonetheless hasn’t seen its product product product gross sales fairly a number of change very heaps over the sooner fairly a number of years. It’s furthermore made for a reasonably good funding, better than doubling the SPDR S&P 500 ETF Notion (NYSEMKT: SPY) over the sooner three years:TSLA Full Return price data by YCharts.As heaps as Tesla has grown its enterprise, patrons paying a progressively better valuation have pushed the overwhelming majority of returns. Brookfield Renewable has delivered unimaginable returns nearly solely from rising its enterprise. A sort of is a predictor for future returns; one acquired’t be.And that objects up Brookfield Renewable to proceed delivering unbelievable returns for patrons. Its administration has an unimaginable monitor file of allocating capital, and the prices for renewables are falling. That’s additional additional additional additional additional susceptible to permit Brookfield to amass and develop additional of the utility-scale electrical vitality producing property that ship frequent, recurring cash change, which has made it an superior funding over the sooner decade.Constructive, Tesla is additional additional additional additional additional vulnerable to return to product product product gross sales progress, and its market fairly a number of is big. Nonetheless the draw as shortly as additional dangers at its present valuation are heaps greater than the prospects for market-beating returns.2. Constructed for any financial atmosphereTesla has confirmed additional resilient to the coronavirus recession than anticipated, with product product product gross sales falling solely 5% all through the second quarter whereas many different automakers seen product product product gross sales fall 20% or additional. There’s furthermore its vitality storage enterprise, which has giant progress prospects, as utilities look to leverage the expertise to exchange older, dearer strategies of vitality interval from hydrocarbons.Nonetheless as time passes, the cyclical nature of those corporations will current out. Utility-scale investments can ebb and alter from one yr to the next, and as Tesla’s electrical autos flip into additional mainstream, the worldwide monetary system will set off its product product product gross sales to fluctuate. That’s among the many many many many many many causes that almost all automakers reap some good benefits of third events for a lot of elements, whereas Tesla has a excessive diploma of vertical integration. Whereas that may be a aggressive earnings related this second, over time it may current a detriment to remaining nimble in its very cyclical finish markets.Brookfield Renewable, nonetheless, sells electrical vitality from wind, image voltaic, and hydroelectric vitality firms it owns. The demand for electrical vitality is normally very mounted, and it sells that vitality beneath long-term contracts. The consequence’s terribly predictable and caught cash change that it’ll presumably allocate to future progress, and return to patrons by an unlimited dividend.This has already confirmed out, with Brookfield Renewables’ predictable cash change, in distinction with Tesla’s giant swings:BEP Money from Operations (TTM) data by YCharts.At current costs, patrons would earn better than 4% in yield, an unlimited payout that delivers a predictable present of returns by itself. The monitor file of rising the payout is equally spectacular, up over 300% over the sooner decade. Furthermore, patrons can depend on payout progress that continues to be above-average, since Brookfield targets to extend the dividend about 8% yearly.Put all of it collectively, and as Tesla grows greater, the bar might be raised for it to regularly outperform in a troublesome, cyclical commerce. Brookfield Renewable, nonetheless, is constructed to proceed delivering regardless of the financial surroundings, and may truly earnings from elements that hurt Tesla.Two good corporations, nonetheless just one good stockI truly like Tesla the corporate. Elon Musk is a visionary who has achieved an unimaginable job taking his imaginative and prescient and delivering unimaginable merchandise and life-changing returns for patrons. I furthermore suppose Tesla is additional additional additional additional additional vulnerable to proceed rising, and typically is a pacesetter in positively one among many best strategies forward for transportation and battery expertise for years to return as shortly as additional. It’s undoubtedly worth a premium to any commonplace automaker.Nonetheless I don’t suppose it’s an superior stock for anybody in search of to make investments related this second. Even an fairly enterprise like Tesla is solely not an superior funding at any price.Brookfield Renewable will doable be an fairly enterprise, with a really extended file of rewarding patrons who’ve purchased and held on tight. The excellence between the 2 is straightforward: Brookfield Renewable trades for an inexpensive valuation, and the character of its enterprise and the big fairly a number of for renewables progress make it far simpler for patrons to foretell a path to continued market-beating returns.