Taylor edges her out in writing, of course. However Katy is a better performer, and her vocals are much stronger despite being hit and miss. I'd ultimately say they're about even.
Katy has the better and more naturally gifted voice
Taylor has the better and more naturally gifted songwriting
They're both mediocre at the other (Katy writing, Taylor singing).
They both play guitar and they both have worked VERY hard to achieve success and both are very kind to their fans. That's the biggest reason I love both of them