Vargas is pretty underrated head-to-head, but let´s not forget, what a defensive wizard Benitez was, and he had an iron chin in his prime (Duran, Hearns, Cervantes, etc.), I see a clear win for "El Radar", something like 8-4 or even 9-3...
I think Vargas could trouble him at times maybe win about 3 rounds but Wilfred Benitez is such a crafty defensive fighter even more so then Winky Wright who Vargas had a very close fight with.
Benitez fought better at 154 than at some other weights. More consistent and used experience. I think he easily outboxed Vargas.
Vargas would do well early but his stamina wasnt that great and Benitez would take over after the midway point. If they fight to 15 Benitez wins wide.
I think 'iron chin' is a bit generous to Benitez. Yes, he did survive Hearns and beat Duran, but he also hit the canvas a bunch of times over his two fights with Bruce Curry. Still, if he was focused, he'd probably beat Vargas.
Why? Benitez would have thoroughly outclassed Vargas, who was never in the class of Benitez or any of Benitez's great contemporaries.