Hard to compare. They are quite different games, despite being both submarine simulators.
Also WW II and modern style submarine gameplay is totally different.
SH3 is more arcade and concentrates on shiny graphics but seriously lacks in the realism and simulation department. DW is more a simulation concentrating on realistic behaviour and correct modelling of reality. Graphics in DW are functional, so say it the polite way.
SH3 is easy to learn and get into, DW is quite complex and you need to read some 80 pages manual. Reminds me of the good old days when games shipped with monster manuals, not just a booklet with more pictures than text. DW requires a lot of patience to get into, but it's very rewarding.
SH3 was released in a premature state and was not finished (basically you need mods to fix all the bugs and missing features, if possible). DW is quite mature and except very minor issues works out of the box. DW is still actively supported by the publisher, while SH3 is history for Ubisoft now.
I personally find SH3 more immersive. It's a blast when the you-are-hunted feeling kicks in, or you are doing a night surface attack. Never got this thrill out of DW so far.
I bought both games around the same about 10 months ago and still play both of them. That hardly happens to other games. This fact should tell I like both. :-)
To sum it up, hard to compare. I wouldn't call one of them the better game. They are both great games. If you enjoy submarines, you will have fun with both SH3 and DW.
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