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All of Welles's films after Citizen Kane were the victims of studio interference and/or budget and time limitations, something one must keep in mind while viewing them. Of these two, Touch of Evil unquestionably stays truer to Welles's vision, but I think the little that's left of The Magnificent Ambersons (especially the first half or so) is more impressive. Of course, Touch of Evil does feature Welles the actor as well as the director, and it's one of the best of his later performances, but I find it difficult to take Charlton Heston seriously as a Mexican-American. The Magnificent Ambersons has a great cast and could have been a truly great movie had the stuffed shirts at RKO kept their heads screwed on properly. I have a great fondness for it, so it still wins here.
Touch of Evil is Welles' best in my opinion.
both fantastic, and touch of evil has since recovered its studio mangling, but i prefer what can be seen in ambersons anyway