Terra's control/manipulation of earth is greater than that of Toph's. She has an edge in raw power and is more versatile. She can control larger volumes of earth, fly on boulders and can actually being the earth structures to life e.g. creating multiple rock arms. Furthermore, Terra's area of influence is bigger and she can control earth from a distance, which Avatar Earth benders are somewhat limited by. Terra could just spam large scale attacks whilst keeping her distance in the air(out of Toph's earth vision). She can also manipulate the earth directly around Toph, which can all be accomplished over a distance.
Toph's moves ard more choreographed. As a bender, she has to perform a series of posses/movements to control the earth to maximise efficiency. Terra just has to will it. Her control is more direct and she can command the earth with little to no movement, to the point where it is almost psychic.
Whats more, Terra's fighting style is radically different to that of anyone Toph has ever encountered before as the latter does not bend/control the earth in the same fashion as Avatar earth benders. Because of this, Terra would be a little harder to predict.
Terra wins after a good fight.
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