This may be one of those questions that has no real definitive answer

Lets say I do a search on google for milk bottles.

There are two sites found Both are blank sites , no enhancements they are both on the same isp both same server Identical in fact except for the name

one is http: //milkbottles.com

the other is http: //blank.com/milkbottles/

which one would be placed higher in the list of results of sites found?

If the milkbottles.com is placed higher does that prove that a domain matching the name searched is preferable? or "is it not as simple as that....."