I wouldn't say one is better than the other since you need both to write a good novel.
Take for example Moby Dick. It has chapters specifically designed to teach you about whaling that are informational and set 100% outside the "world" of the novel's storytelling chapters. Do you need them to tell the story? No. Does it enhance your personal understanding of the story? Yes. Moby Dick was written for people who have no exposure to the whaling world, business or the dangers of it, and as such the book has become a time capsule in it's actual structure, maintaining a history of sorts of how something was done, and why, and then showing us how it was used. (tldr: read the book, read it's informational chapters after you finish cover to cover, then go back and read it a third time just the novel chapters. your brain will thank you.)
But then look at writing that has ... sparse direction. Lots of YA books are written this way, for good reason, the young reader can easily interject themselves into the part or role of the protagonist. "I cannot be the protagonist because I do not look like, or like these things the protagonist is or likes." That argument goes away when your protagonist is bland and dry in description.
Or, it lends itself to mystery. Like the original Sherlock Holmes mysteries. They were written to be narrative driven, but information driven in what they give. Stuff that is explained or seems interesting in the narration of the narrator character (who is not Holmes) is something you recall and think of when trying to piece the mystery yourself together, because otherwise you were given so few or so many details. Modern mystery stories give you something that is either a one-of in your face that you know 100% it's going to be a lynch pin (that dam in Frozen 2 is 100% so present in the opening shot of it, that if you as an adult, didn't think it was going to be the lynch pin in that plot, I cannot help you).
Getting to the side of too descriptive you lend yourself to, mystery and intrigue also, but of a different sort. I've tried to read The Hobbit, multiple times, and it's just... so dry. The conversations between characters are like an oasis admist this terrible dry desert of infodump that I couldn't care less about. Narnia (The Dawntreader) is so full of descriptions on so many fronts, but also so open, that you can almost imagine anything - yes it's a boat, yes it looks like this specific boat, but unless you know what that kind of boat looks like, you could imagine it looks like The Black Pearl or any other generic galleon that'd fit nicely in A Muppet Treasure Island that it wouldn't matter. All you need to know is it's got a deck and it's open, and it's got sails.
The same thing with writing. If I were to say something like "the red flower in his breast pocket almost glowed". Well, okay, it's a red flower. Awesome imagery. My mind goes to "omfg it GLOWS" before I go "omfg this specific species is glowing but it can't in MY world".
"The red carnation"
"The red tulip"
"The red rose"
"The red poppy"
Like all of those flowers mean seperate things in different ways. One is where are they native on the planet. Two is what do they symbolize in pop/modern culture. Three what do they symbolize in my culture? In the culture of the book? If it's a glowing red rose, does that mean I'm in Disney's Beauty and the Beast and it's a magic rose that is linked somehow to a curse? If it's a poppy, a flower that in some folklore is linked to symbolizing blood as in death and rebirth, does that mean this character will die? What about the color of a tulip or carnation? Is it budded, or open? Is the rose a bud or open? Does it matter?
I guess what I'm getting at is you can build important imagery off of each and every choice you make in both instances of Narrative vs Dialogue.
That does not mean your readers will pick it out. (See the thread in here about "Advice you don't want to hear" basically.)
There's also examples on both sides of each working rather well. And, while I strongly loathe the book and am this close to burning my third copy of it, The Scarlet Letter is another "classic" example. I won't spoil anything, but book makes a point of pointing out flowers outside the jail - blooming flowers. Do they symbolize her womanhood, her hope for life, her triumph over adversity of the social structure around her, or is she a witch, and they're just blooming because she's super magical?
The lack of information given to the reader is equal to the amount of information given. The same could be said about people who symbolize the sperm whale in Moby Dick as something pure and good, and that by battling the raw wildness that was made impure by the whaling, is (one) man conquering nature, in that he can now live forever. It could also symbolize the man chasing his youth.
Another thing to do is look at examples of Character Narrated stories and see of they remain that way entirely or if they, at some point, revert to being omnipresent in their narration. The example off the top of my head is that Egyptian trilogy by Rick Riordan. Narrated by two siblings for part of it, and then the other part is them bickering back and forth over an "audio recording" for us to "listen to", but it's a book so we're reading it. Is what the girl sees what is actually there? Or is she absolutely going crazy because she's like twelve and suddenly had her dad ???murdered??? in front of her?
I personally try for a happy medium. In edits I will go back and look at something and see that I've.... "said" something happened and I rewrite it to "be" instead. ""While looking at his papers, he wondered why there were so many."" -> ""While looking through the large mountain of papers a passing thought went through his mind: why the heck are there so many? Did I forget to do some yesterday or did they actually multiply?"" It's not a distinction that's needed, but it's akin to that flower example from before. Does it matter if the red glowing flower is a rose? Should it matter? If it should, I need to address it either there or somewhere else.