The first few years of AK-47 manufacture were machined AK's. Those were, from what I've heard, extremely nice rifles. The more 'modern' AK's are primarily stamped, and made to have loose tolerances to enhance reliability in harsh conditions. The AR-15 is a tightly machined, with exacting tolerance, and designed to be accurate as well as reliable.
The word "reliable" means different things when comparing an M-16/A2 to an AK-47. Reliability for an AR-15 is the ability to maintain high levels of accuracy in demanding conditions. Reliability for an AK is leaving it buried in the mud over night, casually washing it off in the morning, and putting a full magaizine through it seconds later.
Target shooting or light hunting, I'd take an AR-15. Pure hard-core survival, take an AK. I do agree with the comment on SKS's. I had one for a short while, until a buddy of mine decided that he wanted it for more than I paid for it. Shot right well for a cheap gun.
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