What is better hooked on phonics or baby can read?

I can not speak specifically to Baby Can Read but I do know that when teaching students how to read, phonics is not the best answer.

Before a student can learn to read he or she must master phonemic awareness (the ability to hear all the sounds in a Word). Once the child has developed an appropriate level of phonemic awareness, they will then be able to use phonics to improve their reading. Instead of using a program that starts with what a student doesn't know (the letters of phonics), you should start with what the student does know (the sounds he or she hears every day).

Since I do not know much about Baby Can Read, I can not give you an informed recommendation on this topic. I suggest that you try a program that is not purely phonics first.