Urban Decay's VIP set
Shades & IngredientsZero (zealous black), Lucky (brilliant deep copper), Covet (peacock green), Electric (bright aquamarine), Lust (plush purple).
Swatches
Product ObservationsColours: Pigmented, vibrant
Texture: Creamy, smooth
Ease of use: Very convenient size and easy to apply
Price: $29
Size: 5 x 0.03 oz
Make Up For Ever's Aqua Eyes set
Shades & Ingredients
Swatches
Product Observations
Colours: Pigmented, coloured shades are very vibrant
Texture: Creamy, smooth
Ease of use: Very convenient size and easy to apply
Price: $35
Size: 5 x 0.025 oz
Both products seem very similar in terms of being easy to use and quality of the product. The ingredients even seem almost the same! The order of ingredients is slightly different though, so that may account for the minor differences I noticed.
The main thing I found is that the MUFE liners last longer than the UD liners. UD Zero would smudge on my upper lid quite quickly while the MUFE equivalent barely smudged at all. On my lower lashlines both will smudge though (so no difference there). Sorry I was unable to do actual side by side comparisons of the two (because I returned the UD set) but Fuzkittie has done an excellent review and detailed comparison with lots of pictures of the full sized liners -
click here.
Both products are very soft, but I noticed that UD's pencil tips tend to wear out faster than MUFE's. It was also harder to do precise lines (eg. winging) with UD compared to MUFE.
However on a cost basis UD seems to have the advantage. The size of the UD liners is more value for money though as you get slightly more product, and at a cheaper price compared with MUFE liners:
UD liner in Yeyo (from the Velvet Rope set) vs MUFE liners.

Therefore if you wanted to give these as a present, UD would be the better choice. The MUFE pencils look really tiny in real life, so it just doesn't look as good when the receipient opens up their gift :P
The length of MUFE pencils also makes it tricky to work with if you have larger hands. I have pretty small hands and still found them a bit inconvenient compared to UD.
Colour selection wise, I personally liked MUFE because of the dark navy blue shade provided. I didn't like UD Covet (peacock green) because it looked way too bright for me to ever use it. However UD does have a wider range of colours.
Minor gripe: The caps of the MUFE liners are ridiculously hard to remove ! They were capped on really tightly. I enlisted the help of the bf and they still wouldn't budge, until he used some dishwashing gloves to get enough grip to yank them off.
Pros and ConsUD Pros: Wide colour range, size and packaging is nicer for gifts
UD Cons: Smudges easily, needs frequent sharpening due to very soft tip
MUFE Pros: Stays put better than UD, colour selection is more practical
MUFE Cons: Tiny size, hard to remove caps, less product but more expensive
Overall
I think MUFE has the better formulation, but UD is the more economical choice. But if you really want a pencil liner that doesn't smudge I say either use a eyeliner sealant, or go for MAC's Technakohls :P Those are the only pencil liners I've found so far that don't smudge even on the lower lashine.