First, as of this moment we have the exact same rating as them down to the hundredths place, so I wouldn't say either team is better but that they are of very similar quality. And even if there were a small difference in our rating and ranking with them, it'd be best to say the teams are similar rather than one clearly better.
As far as their rating/ranking, they have played a number of really good teams close, although they have lost more of those than they've won, and they have only 2 blowout loses, to #2 Michigan and #23 Iowa. Their strength of schedule is fairly decently better than ours, which means their results have been achieved against a reasonably harder schedule.
While our W/L record is better than theirs, we have a lot of close wins (yay for us!) which is indicative that the records gap between us and tOSU is likely larger than the actual performance gap, particularly when you consider their decently harder strength of schedule. We've also only got two blowouts on our resume, although one of them is a huge loss to #35 State, which is far worse than either of theirs. In fact, given how badly we lost that game (82-58), it's probably the worst loss that either team has on the season.
Given that we have played them on a neutral court and won by a single point, the idea that these are essentially equal teams is the right call. So, in short, KenPom has it right in this case.