No doubt, if one needs to choose between the two. G.K. Chesterton and Hillaire Belloc addressed the problems of both by proposing "Distributism" as an alternative to resolve them. If our current Church leaders and political entities were not so infected by Marxist errors, they would at least give "Distributism" some thought.
I agree! Distributism is just small c, Capitalism. Distributivists will argue that we need more local small family owned businesses and less big Corporate Capitalism. Its a good economic model but the difficulty is transitioning in that direction. It would take a reversal of social structures moving toward decentralization, when modernity continues to move more and more toward a greater centralized corporate-governmental control.