Thesz has this. He wins this bout at his will. Sheik was one of the biggest heels of the early and mid 1980s and yes, no matter what else might be said about him, he was a former WWF Champion. He dethroned Bob Backlund, ending his 6 and a half year run.
However, there's just no comparisson to Thesz. Thesz is one of the most legitimately skilled technicians in wrestling history and still ranks as one of the most legitimately skilled world champions. He spent the 1950s unifying the various regional "world" titles in the country into one singularly recognized World Championship. Thesz's first reign as NWA World Heavyweight Champion lasted more than 7 years, the second longest undisputed World Championship reign in pro wrestling history.
Thesz takes it, that's all there is to it. It wouldn't be a squash, but Thesz would show dominance.