After a number of comparison using exact models and similar lighting, we have finally come to a conclusion: Neither engine is better than the other, We were using our equivalent of the UDK called SEE (ShadowEdge Editor) both engines are just as good as the other one, however, Epic Game's Unreal Engine 3, we did see some things that were slightly not as accurate as the ShadowEdge Physics Engine and vice versa.
As Unreal Engine 3 focus more on graphics, the ShadowEdge Physics Engine focuses on lighting and shadows, so both engines have their ups and downs, so here is the final result: