The imported fabric is 30% cheaper and compares favourably (=is as good) in quality

On LDOCE online, it says:

compare verb

The imported fabric is 30% cheaper and compares favourably (=is as good) in quality.

I wonder if 'compare favourably' is equal to 'is as good'.

'compare favourably' means 'to be better than something else'; however, 'is as good' means something is equal to something else in quality.

It seems that the two phrases are not equal in meanings.

Is my understanding correct?

Thanks!

PS I also posted the same question in https://www.usingenglish.com/forum/threads/251666-The-imported-fabric-is-30-cheaper-and-compares-favourably-(-is-as-good)-in-quality?p=1331437#post1331437, but all of your answers are unique to me. Thank you.