There isn’t a such factor as a such issue as a getting spherical it: Tesla (NASDAQ:TSLA) has been an insanely good funding, producing big returns for patrons keen to carry by way of 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 nice enterprise that makes revolutionary and compelling autos that folks love.Its technological head begin in battery tech and vertical integration in battery manufacturing have furthermore confirmed big 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 agency that has modified the world of autos for the higher, and fully. Nonetheless I take into account there are larger stocks to purchase acceptable now.One amongst my favorites is Brookfield Renewable (NYSE:BEP) (NYSE:BEPC). It may not have offered Tesla-level returns over the last few years, nonetheless it’s been a market-beating funding in its personal acceptable, and has some very precise 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 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 nearly 17 occasions product product gross sales. That’s extra per the type of price-to-sales (P/S) numerous you’d depend on a high-growth, high-margin software program program program program program stock to earn — not shares of a producer. At this writing, Tesla trades for the next valuation than a great deal of of most actually mainly basically essentially the most worthwhile and helpful high-margin tech stocks on this planet:TSLA PS Ratio knowledge by YCharts.The large 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 looking for and selling on the underside P/S numerous to — by far — the most effective.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 form of enterprise that earns 50% or larger gross margins. Of the businesses on this solutions, Amazon (NASDAQ:AMZN) may be primarily most actually mainly basically essentially the most related comparability: one with a enterprise that may be a mix of suppliers and bodily merchandise. As a result of chart above reveals, Tesla trades at an infinite premium, contemplating the place its future margins sometimes usually tend to fall.Now let’s check out that to Brookfield Renewable:TSLA PS Ratio knowledge by YCharts.What does this inform us? In brief, Brookfield Renewable generates fairly sturdy margins of its personal, nonetheless hasn’t seen its product product gross sales numerous change very heaps over the sooner numerous years. It’s furthermore made for a reasonably good funding, bigger than doubling the SPDR S&P 500 ETF Notion (NYSEMKT: SPY) over the sooner three years:TSLA Full Return price knowledge by YCharts.As heaps as Tesla has grown its enterprise, patrons paying a progressively bigger valuation have pushed the overwhelming majority of returns. Brookfield Renewable has delivered unimaginable returns virtually solely from rising its enterprise. A form 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 extra additional extra more likely to permit Brookfield to amass and develop extra 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 extra additional extra more likely to return to product product gross sales progress, and its market numerous is massive. Nonetheless the draw as quickly as additional dangers at its present valuation are heaps larger than the prospects for market-beating returns.2. Constructed for any financial atmosphereTesla has confirmed extra resilient to the coronavirus recession than anticipated, with product product gross sales falling solely 5% all by means of the second quarter whereas many different automakers noticed product product gross sales fall 20% or extra. There’s furthermore its vitality storage enterprise, which has big 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 subsequent, and as Tesla’s electrical autos flip into extra mainstream, the worldwide monetary system will set off its product product gross sales to fluctuate. That’s among the many many many many causes that almost all automakers reap some great benefits of third events for lots of elements, whereas Tesla has a excessive diploma of vertical integration. Whereas that may be a aggressive earnings applicable 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 often 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 a vast dividend.This has already confirmed out, with Brookfield Renewables’ predictable cash change, in distinction with Tesla’s big swings:BEP Money from Operations (TTM) knowledge by YCharts.At current costs, patrons would earn bigger than 4% in yield, a vast 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 larger, the bar is possibly raised for it to all the time outperform in a tricky, cyclical commerce. Brookfield Renewable, nonetheless, is constructed to proceed delivering regardless of the financial atmosphere, 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 extra additional extra more likely to proceed rising, and often is a pacesetter in certainly one of many best strategies forward for transportation and battery expertise for years to return as quickly as additional. It’s undoubtedly worth a premium to any commonplace automaker.Nonetheless I don’t suppose it’s an superior stock for anybody searching for to make investments applicable this second. Even an fairly enterprise like Tesla is simply not an superior funding at any price.Brookfield Renewable will possible 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 massive numerous for renewables progress make it far less complicated for patrons to foretell a path to continued market-beating returns.