Is TOR better than using a VPN service?
Depends on why you are using them. They are similar, in the sense that they mask your origin to the end server that you are visiting, but they are not the same. With VPN you have to trust the service provider that it doesn't keep a record of your browsing habits that the governments can later subpoena them to hand over. You can also use OpenVPN on a machine you bought with Bitcoin from OVH or Digital Ocean and this will insure additional layer of security.
The main problem with TOR is it's vulnerabilities. Because there are just a few exit nodes, if some malicious actor (let's say, NSA) wants to find you then they can join with a few exit nodes and then find out your real IP. If everyone would have hosted an exit node, then it would have been incredibly difficult to discover you.
Also, because of the small number of exit nodes, the speed over TOR is excruciatingly slow compared to a VPN provider, that usually maxes out your home connection.