4% and 7% is excessively high (might have just been a typo on your part). I bet the THD is actually .04% and .07% respectively. Even my low end Onkyo TX-SR502 is rated at .08%.
Supposedly we can't detect THD until it is greater than 1% and most receivers in the class you mention are rated under .1%. The short answer is that the THD ratings are a non factor - they are sufficiently low as to not be audible. Choose between the two based on other factors such as ease of use, features, and the remote control.