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It's a good comparision because both have brand new 100% stock suspension. I've raced a fully modified e36 m3 before and the e30m3 is an absolute joy to drive. It's handling is more nutural than the 318 which will understeer if pushed hard. Overall the grip in the M3 is far superior as well.
Nothing wrong with the 318 either it's a fun car to drive .
Is that the 318is from Lancaster PA that sold a few months ago? It was a real nice car from what I remember. I also think it had an M3 antenna on it like yours. I almost did my suspension over stock but I ended up buying some Billy Sports from a forum member and well.... then I had to buy some H&R sports as a deal for some M3 springs fell through.
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