The AMD Ryzen 7 8700G wins in 7 out of 16 comparable specs, with 8 ties. Its biggest advantage is NPU Performance (100% better).
Ryzen 5 8500G wins in 1 spec (MSRP: 46% better).
Recommendation
Choose Ryzen 7 8700G if you want the best overall performance — especially npu performance.
Choose Ryzen 5 8500G if msrp matters more to you.