I think the 2nd is stronger. It seems that the kage is the strongest person in the village....unless they had equal strength (likely, as it is said that they both created konoha) then whichever was kage later was stronger. It seems that with this system, each kage would be more powerful than the last, as he must be stronger than the previous/reigning hokage to get the title...
Shodaime
Nidaime
Sarutobi
Raidaime
would logically be the order from weakest to strongest.
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