I have an '89 325i and my friend has an e46 323i. Both are 5 speed MT. Which car would win in a race independent of the driver?

e30 325i:
168 hp @ 5800 RPM
164 tq @ 4300 RPM
2895 lbs
0-60: 7.6

e46 323i:
170 hp @ 5500 RPM
181 tq @ 3500 RPM
3150 lbs
0-60: 7.1 seconds

How is the e46 so much faster to 60 when they have about the same HP but the e30 weighs less?

Sources:

The Encyclopedia of Automakers and Car Manufacturers. an extensive list of automakers, tuners and racing specials from around the world