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If so which one i will prefer ?
Although firewall is a broad term but I guess you meant ISA Server vs Hardware Firewall.
If you need more advance and customized requirements like user lever filtering, proxying, content filtering or even wish to integrate with active directory then ISA/TMG is the one you need but performace is slow compared to hardware firewall.
H/W firewall are efficient but not much dynamic or configurable and thats because they are built mainly for filtering or allowing traffic and installed on entry /exit point of your network so slowing traffic is not desirable.
Firewall And Proxy;
Firewall Filter Traffic, per packet and routing.
If firewall is turned off, all users login to internet.
Proxy users must put in there web browser proxy server to use internet, If it was turned off no access to internet.
a firewall & Proxy server both are the network components. but the firewall block ports & programs and the proxy server hide your netwok fo the internet.
ISA Server have more functions and features than standard Firewall have
A firewall is a hardware device and ISA/TMG are a software based gateways and firewalls, it is depand upon company's requirement, some companies prefered to use both and some not. but in small or medium enviroments, they prefered to use soft firewalls i-e ISA/TMG etc.
I personaly recomment that you have to use TMG.
A firewall and a ISA server are both components of network security. To some extent, they are similar in that they limit or block connections to and from your network, but they accomplish this in different ways. Firewalls can block ports and programs that try to gain unauthorized access to your computer, while ISA servers basically hide your internal network from the Internet. It works as a firewall in the sense that it blocks your network from being exposed to the Internet by redirecting Web requests when necessary. And also main feature of ISA is web caching and accelerate the internet browsing.