Under pitching is severely worse because longer lag time (more chance for infection) and more yeast stress leading to off-flavors.
^^ See, these are exactly the types of "established facts" that had me expecting that my batch of sorely under-pitched beer would end up sucking, yet, somehow, some way, it was completely fine.
The infection fighting benefits of a short lag time make a lot of sense intuitively, and for that reason alone I generally shoot for making starters with liquid yeast to shorten the lag time. But even there, I'm guessing that half-decent sanitation practices would more than buffer against a few extra hours of lag time. A lag time of over 24 hours certainly didn't matter in my recent experience.
As for under-pitching causing "yeast stress," this is one of those things that I have read a thousand times on forums and have just accepted as a real thing with real impacts on my beer because, well, it must be a real thing otherwise people wouldn't be talking about it all the time... right...?
Now, I'm not saying it's
not a real thing; my concern is that the propensity for rote repetition of such nuggets of wisdom is out of proportion with the actual threat posed, which ultimately isn't very helpful to any of us. How many of us can:
1) claim to have direct experience with adverse effects in their beer that are directly attributable to "yeast stress due to under pitching." Surely it will be dependent on yeast strain, so for argument's sake, let's take a dirt-common yeast like WLP001 or US-05.
2) describe what the yeast stress effects actually do to the beer. Not theoretically using a bunch of esoteric biology jargon, but a real-world, qualitative description. If I have a basic beer like a blonde ale, which is light-tasting by design and will not be able to hide the markers of fermentation flaws, what will the markers of "yeast stress" taste like?
I'm genuinely curious here, not being a smart ass.
I have used those yeasts dozens of times, often in defiance of suggested pitching rates. Yet, it would be flat out deceptive of me to claim that I can speak on either of these points from direct personal experience.