I am an XQSharp developer, but I will try to give an unbiased answer.
Both XQSharp and Saxon are good products. Each of them has a high standard, and both are aimed at excellent performance. My best advice is to download trial versions and test using the transforms you expect to run. We would be interested to know how you are doing.
If you work in a .NET environment, I expect XQSharp to have several advantages. First, it is developed in .NET, and Saxon is developed in Java and uses IKVM to work in .NET. You might want to compare the Java and .NET editions of Saxon to determine if this imposes performance overhead.
XQSharp is designed for good integration with classes from the .NET Framework System.Xml and System.Xml.XPath namespaces. For example, an implementation uses XPathNavigators. You may find this dating useful.
XQSharp implements and extends the function found in XslCompiledTransform to call .NET from XSLT, which may seem useful to you.
See this list of implementations .
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