This is how I render videos in general. I do:
1. Render to LOSELESS (always, you will be deleting it after a successful encode anyways).
2. I personally use MeGUI to encode my video's, feels like I have more control over them but whatever you want to use. (Do what you need to do to get the file size you want and the video quality to match it)
Do a side-by-side comparison, for example, if you are still new to encoding (like me). Use high-def quality videos where you can instantly tell difference in quality like The Elephant Dream (free to download from their archives, just google it).