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totally depends. for pure dps output dunmer is bit better, but has a bit less sustain.
for pvp both races work very well, dunmer ha a bit more stamina, which is desired to block and dodgeroll a bit while again altmer has better sustain.
The 9% magic recovery from altmer is pretty minimal as far as percent based stat boost go. Most PVE builds have less than 1000 regen, and most PVP builds have 2.0- 2.5k. So you are talking about 90-225 Recovery extra. I am not saying it's not worth considering, but I dont think its enough to give up the extra flame damage from Dunmer.
In PVE, you wont notice the sustain difference, but you will feel the damage difference at the extreme end of things.
In PVP, you might have enough base regen to feel the sustain difference, but its still less damage. Dunmer also gives you more stam (good for PVP) and will offset your fire damage taken if you chose to go vamp (which every min/maxer does). Resource management is more important in PVP, but if that is really your focus, I would go argonian over Altmer.
TLDR: If really trying to min/max, it becomes hard to make a compelling argument for Altmer. If you really dont care about min/maxing to the nth degree, the two are really close. Altmer is probably in 2nd place for mDK PVE DPS and 3rd place for mDK in open world PVP.
Dont pick one of those ugly races to play as. Go orc or stop being stingy and get Imperial. Most enemies fear the Khajit due to the stench, maybe thats something you can use! Although if you want to use fire maybe a furry beast isnt the best option. Hmm tough one..... I know! Which race is best at using fire? The friendly gardener Wood Elf of course. They dont harm trees and certainly wouldnt burn wood so how do they cook steak, the only thing they eat?! Flame power so mystical it defies belief, has to be magic(ka). Wood elves, the greatest secret magicka weilders of all! Go Bosmer. Defenitely Bosmer.
Dragonknight is the only class Dunmer outshines Altmer on all around with the exception of magicka recovery, for magicka builds.
For other classes Dunmer are less magicka powerful, but I feel the stamina bonus makes up or that. Also the flame resistance is helpful if one is planning on making a vampire character.