You're comparing in the best aging film ever made to one of Cannon's better movies. That's like comparing fillet mignon to Fritos.
There are some considerations to be made in understanding the budgets. Firstly, Masters of the Universe has many more effects shots, big unique sets, far more costumers, makeups, and props. Arnold was not yet making T2 money in '87, though he was on the verge.
To their credit, this is one of the Cannon films that looks like a major studio job. There's only a few effects that don't work out too well, but you can see the same mistakes in Hollywood flicks.
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