I think at this point they are incomparable, both in a hardware sense and a functional sense. The only thing that plops them together is the name and that they are alternative forms of digitized media.
That said, AR has more benefits outside of entertainment - or it least it can as it develops further. VR will have its limitations indefinitely so long as the user is functionally blind during use but still has faculties over their own movement.
As far as which is more fun in an entertainment sense, AR is much more user friendly, both with accessibility and continued usage. Not to mention the price alone bars most people from VR functionality that is on par (if not more daunting) than console gaming.
From a manufacturers POV, VR is incredibly difficult to raise competition in a market where resources need to extremely high to create it. I will compare consoles here- where video game consoles are generally born sharing market value with the games that go along with it, VR is exclusively related to its own functionality insofar as marketable returns are considered. AR is a software able to use existing hardware that a developer doesn’t need to create himself, while VR is a hardware system plus a software system.
TL:DR VR is a novel and exciting concept, but AR will win hands down for accessibility, playability, and functionality.