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Which solves this problem better?

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In their own words

Neon

Neon is a serverless Postgres service that separates storage from compute, so databases scale to zero when idle and branch like code. Branches copy data instantly, which makes them practical for preview environments and testing migrations. It is Postgres-compatible rather than a fork, with a free tier and usage-based paid plans.

Supabase

Supabase provides a hosted Postgres database with auto-generated REST and GraphQL APIs, authentication, row level security, file storage, edge functions and realtime subscriptions. The stack is open source and can be self-hosted. It is commonly chosen by teams that want a managed backend without leaving standard SQL, and offers a free tier plus usage-based paid plans.

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