Indoor localization has become an important field of research with its potential for applications in private and industrial environments. Especially for production logistics, factory and building automation or security and safety applications two technologies seem to be appropriate candidates to fulfil the desired functionality. Wireless LAN (WLAN) is widely used for communications and data transfer, and enhancements to deal with industrial situations exist. Ultra Wideband (UWB) is just starting for high-rate, short-range multimedia transfer, but research and standardization activities show lower-rate and longer-range concepts. Although the localization potential of UWB is always stressed, a direct comparison to WLAN is missing. The goal of this paper is hence to compare the localization capability of the two technologies theoretically as well as practically by means of time-of-flight range estimation in an industrial context. The necessary parameters for WLAN are defined by the IEEE 802.11 family and for UWB by the regulatory boundaries of FCC and ETSI as well as the self-developed pulse generator of the IKT. In the first part, the derivations of the range estimation minimum variances using the Cramer-Rao Lower Bound show the theoretically achievable performance of both technologies and the fundamental predominance of UWB. Here, variations of the bandwidth of the UWB signal are also considered. The second part describes the measurement campaign and respective results, which has been performed to get a practical view of the technologies´ performance. Different ranging measurements varying the channel conditions (line of sight, obstructed line of sight) in an industrial environment are analysed using interpolation and optimal filtering to gain ranging statistics of the best possible receiver architecture (without any a priori knowledge). The better ranging accuracy as well as the superior capability of distinguishing between line of sight and obstructed line of sight confirms the result of the theoretical analysis in general favour of UWB.