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In many aspects, for now, Arsenal deserve to be the favorites.
I think it's not just about their ability to put up a tough fight against a team like Manchester City, but it must be admitted that Arsenal have indeed developed into a better team under Arteta. The only similarity between the two is that they don't have a sharp striker, but collectively, all the players in the squads of both teams have the ability to score goals with various variations.
I don't really place Arsenal as favorites in that match, but I agree that Arsenal has a good chance of winning in their home match. Arsenal must be able to take advantage of home advantage to win, but PSG is not an easy team to beat. There are many good players in Luis Enrique's squad who can also score goals and win matches, so both teams' chances of winning still have to be considered.
However the match ends, both of them still have a long journey (6 matches remaining) to reach the last 16.
That's right, they need to win it to increase their chances of qualifying for the last 16 automatically.
Clearly, this fixture looks very tough and how we relate to it goes from our own very perspective on how we judge the performance of this clubs. No doubt both teams are up there in their respective levels but talking about competency to manage this sort of competition, we all are aware that Arsenal faced one tough opponent in the beginning of their Champions League fixture (Atalanta) now they are to face another big team like PSG. Based on the fact that they drew previously i personally would not give the benefit of doubt for them failing to beat PSG while in their home, my prediction slightly not going for another draw once again.