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It seems to me you're comparing apples and oranges. Both are in what I'd call the entry class, but they are very different rigs in terms of their strengths & weaknesses and the overall operating experience they would deliver.
IC-718 is a great basic HF rig that's easy to learn & operate and if that's what you want you can't go wrong with it. I don't have personal experience with one but I suspect it's a more rugged and forgiving rig than the Yaesu.
FT-857D adds the most used VHF/UHF bands, DSP features, and a smaller package, but a lot of those features are buried within menus that must be learned. Just looking at the pictures it appears more fragile. Costs more too.
Getting past the appearance which I don't particularly like, the 857D offers much of what I'm looking for (to suit my own wants & needs, not necessarily yours). I do like the "all band" coverage and the built in DSP, and I'm looking for a sort of one piece traveling companion I can pack in a bag with portable accessories to get on the air anywhere. If that's the sort of thing you want though, I'd suggest looking at the FT-897D which adds a lot for a relatively small increase in price. That's the next rig I'm seriously looking at for myself - but that's just me.
Posting from an undisclosed location in the Nation of Bitter Clingers!
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Yaesu
I would go with the 857d because you get UHF/VHF AND 60 meters as well. Yes, it is a little bit more in $$, but if you dont want to have to buy another radio later for more bands, well, i think it is a good deal for the $$. I have both icom radios and yaesu radios. I find the yaesu to be easier to navigate as far as menus go. To each his own though. Good luck!
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Just to add to N7XDT's good comments - seems lately the new IC-718s are coming from the factory with the optional DSP module pre-installed. On the 2nd hand market - may have to buy the module separate. It's easy enough to install though.
Don't know how long Icom has been factory installing them - couple years maybe?
I've got a 718 here, less than a year old - it came with DSP - good little HF rig.

Registered user #227845
"Having a radio doesn't make you a communicator any more than having a guitar makes you a musician"
--Apologies to Jeff Cooper
Grounding question? Read up.
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KA7O is right. I didn't notice the little asterisk in the feature list, but it looks as though the DSP unit is standard on the IC-718 (on US models only).
Posting from an undisclosed location in the Nation of Bitter Clingers!
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718
The 718 is my main rig.It is easy to operate to full advantage.The rig is currently 100 dollars off at gigaparts, which is a huge bargain.
I like the rig very much and find it very capable.If you are going to use cw, buy a narrow filter for it or you will have to use the SSB filter for cw, which is too wide.The 718 is really good.If you can, try both.I am sure you will find the controls and operation of the 718 more intuitive.
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Look at the yaesu FT-450
The Yaesu Ft-450 is a nice little rig. It has a better receiver than the yaesu ft-857, and has IF based dsp -- which means you won't have to buy any filters. Price wise, it's in between the IC-718 and the 857 D.
Bill
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They can all make contacts, thousands of them.
In order of importance:
-Propagation
-Operator skill
-Antennas
-Radio equipment.
I've always thought the "radio equipment" was at the bottom of the list, and still do.
Antennas are where to "put the money," for sure, but the first two on the list cannot be purchased.
WB2WIK/6
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I've owned both rigs. The 718 is a nice simple rig with good RX audio. Very easy to use and set up. It also has a noise blanker that is practically worthless. I mean turn it on and NOTHING happens on most noise. It is strictly an AM/CW/SSB radio with no FM.
The 857 is by far the better of the rigs. Especially with 6 meters, 2 meters, and 440 as an added bonus. The rigs RX audio is good, but I'd say slightly more narrow than the 718. It also has a good CW DSP filter where the 718's DSP is strictly for noise and an auto notch filter. It's learning curve is higher due to many more functions. Also it has a noise blanker that works well.
A few more bucks, but I wouldn't try to pinch pennies when choosing between the two. If you want simple and easy to use the 718 is clearly the one, but if you want more features with more bands the 857 is the winner.
I sold my 857 and now own two FT-897's. Same rig with bigger knobs and set up for portable operation.
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I have both, and the 718 is by far my preferred as a base rig. Much more practical (menus,...).
more often on the waves on my avatar.....
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I have both an IC-718 and a FT-897. Both have useless DSP's. I have a West Mountain Radio CLR-SPKR for use with the 718, and a BHI, Inc 1061 DSP module installed in the FT-897.
These aftermarket DSP's have made these much better radios. If doing over again, I would not put an internal module in the 897, but simply use the CLR-SPKR.
And both radios sound identical according to reports, with me swapping back and forth between them.
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