Power is the same, as is the torque, but the driving dynamics couldn't be further apart.

There's a famous saying. It goes 'think before you open your mouth'. There's another one, in a similar vein, 'don't set yourself up for a fall'. Pre-school youngsters, the elderly, US presidents and those with blonde hair are obviously excluded, but those at the helm of an automotive empire must take heed. This simple rule obviously translates badly into French, as Peugeot bravely laud a current advertisement, boasting that their new 207 RC is back. Not only back, they'll have you know, but back with a vengeance. In short, Peugeot say the 175bhp twin-scroll turbocharged hatchback makes other hot-hatches lukewarm. Fighting talk monsieur, considering the mighty Golf GTI, the Renault Clio 197, Honda Type R and, of course, the Mini Cooper S.

Perhaps Peugeot have re-shelled all the remaining 1.9 205 GTIs (the iconic Pug that perfected the hot-hatch concept), paid $ 100 for the parts, added some more fuses, relays, an intelligent stability control package, a comprehensive computer, electric windows that actually work, and gave it a tail-end that would stay behind under heavy breaking. Surely that is the quickest way for Peugeot to get the GTI crown back?

I'll ease up on the comparisons in a few lines, but for the sake of getting things off my chest the RC actually has 42bhp over the old 205 GTI and 76lb ft of extra torque. Yet, twenty years on (for want of a better word) the replacement is only able to knock a clear second off the 100kph dash, and manage a further 21kph. The power-to-weight ratio is down 5bhp per ton though, but then again the new Peugeot is probably made of proper metal and not the thin shavings taken from the inside of a baked bean tin, used on the 205 GTI back in the day. OK, I admit old cars are old, not only in age but also design, consumer comfort, technology and safety.

The old 205 GTI is a clear example to pedestal and ridicule for its unmitigated disregard for public wellbeing. It wouldn't even pass as a static show car, under the current laws for health and safety. The 207 RC is a padded cell in comparison, made of sheep's wool and cotton candy. The rough edges that once threatened pedestrians are long gone, but I fear so have the flying coffin characteristics. Oh what a different world we live in today.

The hot-hatch criteria has clearly changed course in the last decade, aiming a product towards a market of buyers who require something quick, progressive, compact, yet spacious and practical. And the concept is selling well, surprisingly. As the polished product of the pioneering hot-hatch era, experience of the 205 should put Peugeot in good stead for clawing back that icon crown, with the latest 207. But before it can go after the Golf GTI, it has a rather pesky obstacle a little closer to home, in its path. And that would be the Mini Cooper S.

Not because they target the same market segment, but because they share the same turbocharged engine. Peugeot were obviously hoping for the same God-sent performance gains that the UK-built BMW/PSA Peugeot Citroen 1598cc four-cylinder 16v engine, with direct-petrol injection, gave to the second-generation BMW Mini, compared to the previous Tritec unit. And for what it is worth, they are pretty much word for word the same. 2/10th of a second difference up to 100kph, in favour of the Mini, and a 3kph top end advantage, again for the Mini.

The engine still feels far more like a tuned naturally aspirated four-cylinder, rather than the turbocharged unit that it is, with boost coming on song very low down the rev range. There's no turbo lag to shout about either, the engine pulling cleanly up to the 6500rpm limiter.

The free-revving responsive nature of the engine give both cars great overtaking punch, but there are reservations with the gears, in both the RC and the Cooper S. Firstly, every car in the hot-hatch segment these days has six gears. The 207 RC is offered with only five, and five very sloppy cogs they are too. The shift is vague at best - typical Peugeot to be honest - but if (and I mean if) you time the changes correctly you could stir up a storm. One benefit is the far right hand-down reverse selection, instead of threatening reverse every time you require first, or vice versa, as is the case in the Mini.

Sounds like the Pug could claw back some lost brownie points, especially with the 148-litres per 100 on the combined cycle against the Cooper S's 154-litres per 100. But is it enough to lure customers away from the Mini?

Power is the same, as is the torque, but the driving dynamics couldn't be further apart. The Mini may annoy some, screeching off the line when all you want is a smooth launch. It'll annoy some for its twitchy habits and high level of torque-steer. But for some, me included, this is what the Mini is all about. It's fun and frisky, keeping your attention all of the time, requiring both hands around the chunky steering wheel when attempting anything adventurous. It is a safe car - by all accounts - but it has the potential to turn on you, if you don't play ball. It will keep you on your toes under heavy braking too, threatening to swap ends.

The Peugeot will change direction a lot cleaner, and not once in the week we had the 207 RC did I ever feel like it was about to snap, lock-up, or spin on me. While this may be good for the novice driver, it does result in a driving experience that fails to inspire. This is compounded by the fact that the 207 RC is too tiring to consider as a daily car, banging and crashing over uneven surfaces, even bobbing up and down, uncomfortably, on the highway. On the plus side, as the speed increases, so does the fluidity of the uprated MacPherson dampers. It is only when pushed hard, that they show reward, but only just, allowing you to tailor your corner approach and exit with a bit of confidence - although not quite as much as you get from behind the wheel of the Mini.

While it is a capable car, compared to the Cooper S, the RC fails to impress, coming across as lacking in feel and character. The fact that the Mini feels significantly quicker, and ultimately faster, when in fact its performance figures are almost the same as the Peugeot says it all really.

You can immediately see the philosophy behind the Mini - even if it is a little fussy around the edges. For this reason I'm not convinced the Mini will ever lose out to the Peugeot. Unless price comes into play...

Visually it is the Mini that shines, again. Maybe it's because of the bright yellow coachwork and the snazzy optional extra alloys, but the Peugeot might as well be invisible as passers by gawk at the newer of the new BMW Minis. The Mini is classy, fresher and funky. Once inside you feel special in the Mini, even if the monster dinner-plate centre console dial is a trifle embarrassing, the fancy pants mood lighting too la-di-da for a firecracker hot-hatch, and the seats trying too hard to hark back to the days of drainpipe trousers and winklepicker shoes instead of offering serious support, as they should. The Peugeot has a better grasp on what a sports seat should be, covered in Alcantara and sculpted to hold you in place. But take heed, the car will have depreciated a third of its forecourt price before you've found a genuine seating position for feisty driving. Another positive note is that there is a lot of space inside the 207, with more than ample storage space. Moving to the back seats you could just about squeeze three people into the rear of the Peugeot, while in the Mini you would struggle with just two. The Peugeot trumps the Mini in terms of load-carrying capacity too, nearly double the storage space when the seats down, compared to the Cooper S.

Once you've finally pulled your head out of the rear of the 207, the time comes to decide which transplant twin wins the distant cousin competition? Well, if you didn't see it coming, shame on you. It's the Mini, of course. The Mini feels complete, as if designed from the outset to be a sporty hatch-back, unlike the Peugeot which appears too much of an after thought, from the lightly modified brigade.

At the end of the day if you have your heart set on a Mini, but are tempted by the massive saving you'd make by buying the 207, I suggest you save up and buy the Mini. If, however, you have more than image to consider when buying a hot-hatch, such as practicality and fuel economy, you'd be mad not to consider the Peugeot. But remember, the 207 RC is not as hot as the bods at Peugeot would have you believe...