Canon SX120 IS has a 10.0MP 1/2.5-inch (5.744 x 4.308 mm ) sized CCD sensor and features Digic 4 processor. On the other hand, Olympus FE-4030 has a 14.0MP 1/2.3-inch (6.08 x 4.56 mm ) sized CCD sensor and features TruePic III processor.
Below you can see the SX120 IS and FE-4030 sensor size comparison.
As seen above, Olympus FE-4030 has a 1.1x Larger sensor area than Canon SX120 IS. 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.