It wouldn't have occurred to me to compare the two in terms of strength, as they do different things. I wouldn't say "something is only MD5 encoded". MD5 is not an encoding, not even a cipher, but a hash. Once something has been run through MD5, the contents can not be recovered.
Maybe what's meant here is that the crypto method of digests (one-way) is stronger than the one used with CCs (which I think is based on encryption, and thus two-way). But I'd consider the authentication provided by CCs to be stronger than the one provided by a digested password.