It's not that the 1037 is better. It's bigger! It has (3) 7" woofers compared to the 1027 (2) 6 1/2". The 1027 is more suited to small/medium rooms and the 1037 fits nicely in large/medium rooms. They both sounded similar to me. The 1037 plays a little lower in the bass. But you can integrate a subwoofer into the system to play it down even further.