Is one better then the other for SEO reasons, and if so, why? If it makes no difference to the search engines, which way is better for the visitor? Option 1) example.com/whichisbetter/ or Option 2) example.com/which-is-better/ Thanks in advance!
I don't believe search engines care. I use example 2 because the words are more clearly defined. Using dashes might be better for branding, especially if the words can spell something else if put together improperly. "examplesofsiteslikethis.com" reader says: was that "example sofs ites like et his?" with dashes, "examples-of-sites-like-this.com", there is no question where each new word begins. I know, it's an out-there explanation of my (probably misguided) opinion...
This article says quite the opposite! Underscores are better! http://12pointdesign.com/advice/dashes_vs_underscores.asp
It doesn't matter if which of url are you going to use as long as your content is properly optimized and you build quality links using your targeted keywords.