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'87 535is 5spd vs. '87 L6 auto

My buddy claims his '87 L6 automatic (with recent major tune-up and Dinan 
chip but no other mods) is quicker than my '87 535is 5-speed.  I just bought 
my car and am in the process of doing the tune-up and will probably be adding 
a chip.  Is he right or can I embarrass him like I'd like to be able to.

Part of my question also relates to whether a Dinan (or Autothority etc.) 
chip is worth the $165 quoted by BMP or if I should spend my money on more 
worthwile mods.  Thanks in advance for the info.

Scott