There is no such thing as a such factor as a getting spherical it: Tesla (NASDAQ:TSLA) has been an insanely good funding, producing huge returns for patrons eager to hold by the use of all the noise and distractions, to not stage out the potential implications of a world recession. Moreover, it isn’t merely hype: Tesla is an surroundings pleasant enterprise that makes revolutionary and compelling vehicles that people love.Its technological head start in battery tech and vertical integration in battery manufacturing have moreover confirmed giant advantages, to not stage out the potential for its renewable vitality merchandise, and the appears of autonomous-vehicle suppliers which may ship future earnings.Image current: Getty Footage.I’m not a Tesla bear. It’s a unbelievable firm that has modified the world of autos for the upper, and completely. Nonetheless I consider there are bigger stocks to buy acceptable now.One among 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 private acceptable, and has some very actual advantages making it the upper funding. Listed beneath are two predominant causes.1. Predicting future returnsAs lots as Tesla has been a worthwhile funding, there isn’t any getting spherical it: An infinite amount of the stock constructive components acquired correct proper right here from the stock’s valuation rising, not elementary enchancment in its outcomes.At this writing, Tesla shares now commerce for just about 17 events product product sales. That’s additional per the form of price-to-sales (P/S) diverse you’d depend upon a high-growth, high-margin software program program program program stock to earn — not shares of a producer. At this writing, Tesla trades for the following valuation than loads of of most certainly basically essentially the most worthwhile and useful high-margin tech stocks on this planet:TSLA PS Ratio data by YCharts.The massive takeaway is that Tesla’s returns have hinged all through the market rising how lots it values the stock, not enhancements in its underlying enterprise outcomes. Tesla has moved from in search of and promoting on the underside P/S diverse to — by far — the best.Correct proper right here is the rub: Even when it brings higher-margin autonomous suppliers into the combo finally, Tesla acquired’t ever be the sort of enterprise that earns 50% or bigger gross margins. Of the companies on this suggestions, Amazon (NASDAQ:AMZN) may be primarily most certainly basically essentially the most associated comparability: one with a enterprise that may be a mixture of suppliers and bodily merchandise. Due to the chart above reveals, Tesla trades at an infinite premium, considering the place its future margins typically are more likely to fall.Now let’s take a look at that to Brookfield Renewable:TSLA PS Ratio data by YCharts.What does this inform us? In short, Brookfield Renewable generates pretty sturdy margins of its private, nonetheless hasn’t seen its product product sales diverse change very lots over the earlier diverse years. It’s moreover made for a fairly good funding, larger than doubling the SPDR S&P 500 ETF Notion (NYSEMKT: SPY) over the earlier three years:TSLA Full Return price data by YCharts.As lots as Tesla has grown its enterprise, patrons paying a progressively larger valuation have pushed the overwhelming majority of returns. Brookfield Renewable has delivered unimaginable returns practically 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 costs for renewables are falling. That’s extra additional extra more likely to allow 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 earlier decade.Constructive, Tesla is extra additional extra more likely to return to product product sales progress, and its market diverse is big. Nonetheless the draw as soon as extra risks at its current valuation are lots bigger than the prospects for market-beating returns.2. Constructed for any monetary atmosphereTesla has confirmed additional resilient to the coronavirus recession than anticipated, with product product sales falling solely 5% all by way of the second quarter whereas many various automakers observed product product sales fall 20% or additional. There’s moreover its vitality storage enterprise, which has huge progress prospects, as utilities look to leverage the experience to exchange older, dearer methods of vitality interval from hydrocarbons.Nonetheless as time passes, the cyclical nature of these firms will present out. Utility-scale investments can ebb and change from one yr to the next, and as Tesla’s electrical autos flip into additional mainstream, the worldwide financial system will set off its product product sales to fluctuate. That’s among the many many many causes that the majority automakers reap the advantages of third occasions for a lot of components, whereas Tesla has a extreme diploma of vertical integration. Whereas that may be a aggressive income appropriate this second, over time it may present a detriment to remaining nimble in its very cyclical end markets.Brookfield Renewable, nonetheless, sells electrical vitality from wind, picture voltaic, and hydroelectric vitality corporations it owns. The demand for electrical vitality is usually 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 through an unlimited dividend.This has already confirmed out, with Brookfield Renewables’ predictable cash change, in distinction with Tesla’s giant swings:BEP Cash from Operations (TTM) data by YCharts.At present prices, patrons would earn larger than 4% in yield, an unlimited payout that delivers a predictable current of returns by itself. The monitor file of rising the payout is equally spectacular, up over 300% over the earlier decade. Moreover, patrons can depend upon payout progress that continues to be above-average, since Brookfield targets to increase the dividend about 8% yearly.Put all of it collectively, and as Tesla grows bigger, the bar is maybe raised for it to always outperform in a tough, cyclical commerce. Brookfield Renewable, nonetheless, is constructed to proceed delivering whatever the monetary environment, and may actually earnings from components that harm Tesla.Two good firms, nonetheless only one good stockI actually like Tesla the company. 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 moreover suppose Tesla is extra additional extra more likely to proceed rising, and usually is a pacesetter in one of many easiest methods ahead for transportation and battery experience for years to return as soon as extra. It’s undoubtedly worth a premium to any commonplace automaker.Nonetheless I don’t suppose it’s an superior stock for anyone looking for to make investments appropriate this second. Even an pretty enterprise like Tesla is just not an superior funding at any price.Brookfield Renewable will likely be an pretty enterprise, with a very prolonged file of rewarding patrons who’ve bought and held on tight. The excellence between the two is simple: Brookfield Renewable trades for a cheap valuation, and the character of its enterprise and the large diverse for renewables progress make it far simpler for patrons to predict a path to continued market-beating returns.