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Terraria is more coherent and a better design, even if it has less to do, and gets very grindy towards the end. Starbound starts out grindy and stays there, though it is less than what Terraria eventually hits. I would check back after 1.4 is released as Starbound could make a comeback, but at this point the devs are in their cave hammering away at something.
I would praise either one as good choices. Your best bet is to try both for about 15 minutes apiece and decide before the refund timer expires.
Starbound has ships and multiple planets.
Terraria has zombie invasions and grappling hooks.
Starbound has a semi story line you can follow.
Terraria has epic boss fights to tackle.
Starbound has a varity of races to choose from.
Terraria has a lot of hair and color options.
Both have a wiring system. Both have some form of pet system. Both are very fun.
Starbounds basegame is ok but lacks replayability imo, it really relys on mods to make it amazing (skyrim does the same thing).
Imo Starbound is just not as memorable when you think back and compare them even though it's an ok game.
There are endless ways to progress in it.
Starbound, however, has all of that except for solid performance, crap mods, and being stuck on a single map. The optimization is subpar, the mods are astounding, and you have a plethora of planets to visit even if some are copy/paste of one another (that said, still far more variety than Terraria offers). Chucklefish cannot, however, be relied on to deliver a good promise. There is a story but it's too generic to totally care about and you can ignore if if you wish to.
Personally, I've played the two to death and I'd have to say Starbound. It is leaps and bound ahead of Terraria in a technical/content standpoint and has that much more replayability.
Terraria no. :/