In the case of Michigan? They beat Minnesota going away. Michigan St. is the only undefeated team in the Legends. That's "better" any way you slice it.
But they lost to Penn St who has 3 losses. Indiana/Ohio St./UCF. I would only put Michigan St in front since they are undefeated in conference, but Michigan, though hasn't looked AS BAD, but still have looked lost at times this season.