IIRC ESP brakes different wheels at different times to bring the car back into line using yaw sensors, accelerometers, steering angle sensors and gyroscopes. It basically looks at what angle your steering wheel is at and what way you want to go (using the steering wheel sensors), then uses the accelerometers and gyroscopes to look at the way the car is actually going, then brakes the correct wheel(s) to bring it into line with the way you are pointing your steering wheel.
Traction control simply limits the amount of power when you launch so you don't wheel spin.
Its not a case of one being better, but they are different systems. TC, ESP and ABS are all included in cars with ESP.