I have both. They can act as a code reader, though they are more of an OBD/CAN scanner with extra features.
They provide you real-time sensor data as well as provide a basic trip computer functionality.
Usefulness depends on how important that additional information is to you. For someone trying to maximize fuel economy or interesting in valve timing overlap or fuel trims - IMO, these will give you more capability than a similarity priced scanner. Will not be a replacement for a dedicated full capability scanner for diagnostic work - but that was never the intent of the Scangauge or Ultragauge. These are designed for full time connection to the car - some owners have these permanently mounted in their cars.
Scangauge was the "original" stand alone unit - the Ultragauge was designed as an open source alternative - hence the lower price point. Personally - I like them both. Both have decent designs, though the SG is more polished. The SG also gives you a bit more flexibility in installation options at the OBD connector.
Also keep in mind that there are smartphone options as well. I have apps that I run on both my Droid and iPhone that use a Bluetooth connection on the OBD connector. Provides about 95% the feature set of the SG and UG - for a fraction of the cost (cost of the app) - assuming you already have an appropriate device.