Allah chose Adam, Nuh (Noah), the family of Ibrahim (Abraham) and the family of 'Imran above the 'Alamin (mankind and jinns) (of their times). (Qur'an 3:33)
Here Prophet Adam(pbuh) and family of Ibrahim are the favorites of Allah. And more over note that Prophet Moses (Moosa pbuh) was of the family of Ibrahim(pbuh). (Perfectly showing the generations although from Christian sources The Genealogy of Moses)
From the above verse it is perfect clear, that it is the creator who chose one above the other and believers have to say,
The Messenger (Muhammad SAW) believes in what has been sent down to him from his Lord, and (so do) the believers. Each one believes in Allah, His Angels, His Books, and His Messengers. They say, "We make no distinction between one another of His Messengers" - and they say, "We hear, and we obey. (We seek) Your Forgiveness, our Lord, and to You is the return (of all)." (Qur'an 2:285)
Those Messengers! We preferred some to others; to some of them Allah spoke (directly); others He raised to degrees (of honour); and to 'Iesa (Jesus), the son of Maryam (Mary), We gave clear proofs and evidences, and supported him with Ruh-ul-Qudus [Jibrael (Gabriel)]. If Allah had willed, succeeding generations would not have fought against each other, after clear Verses of Allah had come to them, but they differed - some of them believed and others disbelieved. If Allah had willed, they would not have fought against one another, but Allah does what He likes. (Qur'an 2:253)
Now coming to Hadith, Prophet(pbuh) was describing how they're chosen by the creator one above the other.
What should we do with these kind of hadiths?
To get a perfect picture, we must try understanding things from Qur'an first.
May the creator guide us all.