I think you are going to see tail lights man. The M3 is lighter and has a much much much better OEM
suspension than our cars.
Overall power isn't that big of a deal - its the power to weight ratio. If he's lightly modded, he will have a much better power to weight ratio than you. His car weights somewhere around 2800lbs...yours weighs over 3400lbs. 600lbs is a pretty big difference and having 30hp or so more isn't going to make up for that weight difference.
If you have an OEM worn out
suspension, your torque will not be that big of an advantage b/c you will have a harder time getting the power to the ground.
And if you are using all-season tires, I doubt you'll get him at the line.
Now don't get discouraged, having a M3 spankin' 'Stang is a few paychecks away - you just have to spend your money wisely. Get good tires, re-pack your track-lok, and re-do the front and rear
suspension (torque arm/phb). Put the car on a diet and you'll own him from a dig. You'll have a better power to weight ratio and you'll have killer traction. On the highway, that's another couple paychecks (H/C/I).
Have fun and be safe!