Best or Better are strange terms. Backing up the whole machine is generally an easier restore because you bring up hyperV then restore the VM to it. Anything else requires some form of effort from you before restoring the machine.
My logic is to have a robust description / walk through / how to describing how to rebuild the servers and then backup the information required to get that system back to current. I find it much more convenient than, for example, trying to get whole disk images offsite.
Whatever you do needs to work for you and your setup though.