This one is kinda iffy. Loki can't hang with anyone here in terms of physical prowess. But to me at least, he's also the most powerful on the field. So it kinda goes if he goes physical, team two for the easy win. If he uses his magical powers, Team one wins very easily.
Loki has admitted Thor is more powerful before and could have killed him multiple times throughout their history. Loki has tried swapping powers and has amped himself strength wise over the years and Thor always beats him. Even Loki agreed he can't take Thor head on without some great scheme or angle.