According to verge Morpheus has a better lens and Rift has a better screen
Yes, this is a good paragraph on the display and optics differences as they perceived them:
The obvious, unavoidable point of comparison for Project Morpheus is the Oculus Rift, which Sony now says it hopes to stay in friendly competition with. Morpheus and the Rift use 1080p screens and similar head-tracking technologies, but their strengths and weaknesses vary. Both headsets have gone a long way towards eliminating lag, but Morpheus is still a little blurrier than the newest version of the Rift. Conversely, its superior lenses have actually done better at removing the blocky "screen door" effect, even if the display obviously can't measure up to a 2D counterpart. It's great at blocking out light without feeling stifling, something the Rift still struggles with. Its 90-degree field of view, however, is a definite detriment. The first Oculus Rift developer kit left thin black bars in your peripheral vision, but Project Morpheus has unavoidable, often distracting black half-moons. It's still impressive, but it's got to get a lot better before I'd call it truly immersive.
They'll probably end up converging on each other in the consumer models.