The code compares pointers and arrays in C by printing their sizes and string lengths. When a string literal is assigned to a pointer, sizeof(pointer) returns the pointer size rather than the string length, while sizeof(array) returns the full array size including the null terminator. strlen(pointer) and strlen(array) both return the string length excluding the null terminator. When an array is passed to a function, it converts to a pointer and sizeof then returns the pointer size rather than full array size.