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Both are correct in different circumstance. We use compared to when the subjects are of different orders, for example Compared to a brick, this car is aerodynamic. We use compared with when the subjects are of the same order, for example Compared with Robert Frost, Rod McKuen isn't much of a poet.

Alternative Answer

'Compared with' is used for generalisations, such as "Compared with the Victorians, we are a much healthier society".

'Compared to' is used to compare statistical facts, such as "A four-by-four uses more fuel compared to a mini".

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Q: Is it compared to or compared with?
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