Depends on your experience and on the offer. A code challenge is just a first filter; it doesn't mean the company will make an offer. Probably not worth putting yourself through that for maybe nothing.
Take the offer you have. Don't work for a company that makes you do coding challenges.
TAKE THE FIRST OFFER.
What you could do is tell the "Code Challenge" company that you will be accepting another offer and wanted to know if they would make "an exception" by letting you skip the challenge. Then if the "code challenge" company doesn't offer a substantial increase...go with the first company. If it's close, make sure to go with the company WITHOUT the challenge.