I work in an engineering field that has a lot of both. It is interesting to compare someone with a PhD going into industry fresh vs someone with like 4 years of industry work experience. They both graduated undergrad at the same time, but took two vastly different paths.

The PhD employee generally has a stronger grip on the mathematical fundamentals going on behind the scenes and knows what kind of questions to ask. The employee with the undergrad degree and more experience, generally has a lot more familiarity with the tools and processes (coding, SQL queries, understanding how the company works...etc). A lot of PhD folks have all kinds of things on their resume like "Python" when their total experience was editing their advisor's old script.

Both approaches are valid. The PhD employee eventually will pick up more practical skills and if the undergrad is any decent, they'll push themselves to learn more theory. The PhD employee has the potential for more doors to open, but gave up 4 years of savings/retirement.