Both Panasonic TS2 and Kodak Touch have 14.0 MP resolution sensors but Panasonic TS2's sensor is 1/2.3-inch (6.08 x 4.56 mm ) and Kodak Touch's sensor is 1/3-inch (4.8 x 3.6 mm ).
Since Panasonic TS2'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 Kodak Touch.
Below you can see the TS2 and Touch sensor size comparison.
As seen above, Panasonic TS2 has a 1.6x Larger sensor area than Kodak Touch. 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.