Well his armour has best stats when compared to all unupgraded armours. But yeah sets like Giant's set get better when upgraded. Hammer though. Well mediocre for it's weight and strength requirement, but the health regen is a nice gimmick and looks stupidly big too.
Honestly, between Smough's hammer and the Server... Really, I don't like the Server's moveset all that much (that little twirl before actually bringing the thing down upon an enemy) but I'd take it over the hammer anytime. Plus, I think they heal about the same amount of HP per hit (it's about 5HP, isn't it?)
There are three weapons that do that. Butcher Knife (5 hp), Server (7 hp) and Smough's Hammer (10 hp). Also there is a ring that absorbs hp when you kill enemies which absorbs 30 hp but doesn't stack. According to wiki at least.
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