RE bullet is better than Yamaha FZ as it has a 350 cc engine which produces a lot more power than FZ. Also the mileage of the 350 cc engine is better than that of the 150 cc Yamaha engine. The RE bullet is much better in terms of cruising as well as city riding as gear changing is not an issue with the bullet. You should go with the Bullet for enhanced comfort and power with a reasonable mileage.