In general, the The Lord of the Rings movies are better because they’re more Millennium Falcon-ey. They try to do a lot with a lot of complex plot devices, and they often struggle to make them all work. The Hobbit is simpler and much more fun because it has fewer characters and shorter arcs. It can therefore focus on smaller moments of humor and excitement. Bilbo Baggins is also much funnier than any other protagonist in cinema history.
All in all, The Hobbit is an excellent movie, but it just doesn’t compare to The Lord of the Rings when it comes to world-building or elegant storytelling. If you only want a movie that’s lighthearted and fun, the Hobbit trilogy will do the trick.