It depends on your dietary needs. Corn-fed animals have a higher caloric concentration due to higher amounts of fat and marbling from higher energy grain feed. Grass-fed animals are generally leaner.
limbonics is correct. It is always better to go with organic, grass-fed, NON-factory farm animals: they produce leaner meat with healthier nutritional value, and no antibiotics or hormones. As far as the nutrional value goes, according to the gustrength website (attached below), research spanning 3 decades indicates that grass-fed beef has higher saturated fatty acid lipid profile, especially when it comes to omega 3 fatty acids. While corn/grain fed beef has this healthier type of fat, there isn’t nearly as much of it (although both grain-fed and grass-fed beef have about the same amount of omega-6 fatty acid content). Additionally, grass-fed beef has more vitamin A and E levels than grain fed beef, as well as cancer-fighting antioxidants. Overall, grass-fed also tends to be lower in fat, which helps decrease fat intake in general. Considering this, the USDA meat grading system might confuse you: it is based on the marbelized fat content in beef, “prime” being of the highest fat content and “select” being the lowest. But when is it really “prime” to have the most fat possible in your diet? While it all boils down to a matter of choice, if you care about your health, I would suggest that when you buy beef go with the grass-fed, non-factory farm, organic kind – and don’t necessarily go by what the USDA says – they obviously don’t have the general public’s best interests in mind in this respect (from a health standpoint, anyway). See the links for more info.
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