Larger heaver bullets can transfer more energy to the game and have more momentum that Helps penetrate thicker skin and bodies.
A lighter smaller bullet may have the same energy but does not have the ability to transfer all of its energy unless it is stopped buy the game hunted.
In many cases cartridges like the 7 Rem mag will pass completely through a deer sized animal without transferring all of its energy allowing the animal to run long distances before collapsing, but a less powerful cartridge like the 7/08 will knock them off there feet with far less potential energy and transfer most if not all of its energy to the game.
So to answer your question , It is a combination of both, based on the game you will be hunting. Ideally, you want the bullet to end up under the skin on the opposite side (It delivered all of its energy to the game).
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