Both Olympus XZ-10 and Olympus TG-5 have 12.0 MP resolution sensors but Olympus XZ-10's sensor is 1/2.3-inch (6.17 x 4.55 mm ) and Olympus TG-5's sensor is (1/2. ).
Since Olympus XZ-10'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-5.
Below you can see the XZ-10 and TG-5 sensor size comparison.
As seen above, Olympus XZ-10 has a infx Larger sensor area than Olympus TG-5. 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.