Both Canon S110 and Olympus 7000 have 12.0 MP resolution sensors but Canon S110's sensor is 1/1.7-inch (7.44 x 5.58 mm ) and Olympus 7000's sensor is 1/2.3-inch (6.08 x 4.56 mm ).
Since Canon S110's has a larger sensor area with the same resolution, this means that it also has a larger pixel area hence better light collecting capacity for a given aperture compared to Olympus 7000.
Below you can see the S110 and 7000 sensor size comparison.
As seen above, Canon S110 has a 1.5x Larger sensor area than Olympus 7000. Larger sensors give photographer more control on the depth of field and blurry background compared to smaller sensor when shot in same focal length and aperture.