While I'll agree that real world experience is more useful than a certification, real world experience is much easier to fake. At least with my own SCJP and Microsoft Certifications, certifications can be verified with the organization issuing the certification.
Also, my experience is that certification tests can be quite difficult; to the point that it would be nearly impossible to get a certification without some real world experience. Not completely impossible, but nearly.
So I'm going to have the unpopular opinion that certifications are better simply because they are more verifiable. Downvote away!
That said, neither criteria is as important as their ability to answer code questions in an interview. If they can't solve problems, then any amount of experience or certification, real or faked, is irrelevant.