Gain and distortion are related. Clipping (distortion) occurs when the headroom of the circuit is exceeded regardless of where that occurs. If additional gain raises the signal level further, a larger amount of clipping occurs.
It gets complicated when you think about the total gain of a preamp in terms of volume (and compression). With the same power amp, a preamp with fewer stages or less cold clipping will probably be less distorted than one with more stages, more cold clipping, or both. The absolute volume should be similar with both preamps because the power amp itself only has so much headroom. With a theoretical power amp with infinite headroom, the preamp with the most total gain (measured input vs. output) would be loudest regardless of how much clipping occurred along the way.