Both Olympus TG-870 and Nikon AW130 have 16.0 MP resolution sensors but Olympus TG-870's sensor is (1/2. ) and Nikon AW130's sensor is 1/2.3' (6.17 x 4.55 mm ).
Since Nikon AW130'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 TG-870.
Below you can see the TG-870 and AW130 sensor size comparison.
As seen above, Nikon AW130 has a infx Larger sensor area than Olympus TG-870. 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.