Link Building With NoFollow & The Effects On Rankings

I understand that the process of link building with nofollow links has no positive effect upon the PageRank of the site in quesiton but does it have any bearing on the rankings for page keywords? So for example: Site 1 Keyword: Car No Follow Back links Total = 0 Site 2 Keyword: Car No Follow Back links Total =100 Would site 1 potentially rank above site 2 even though there are 0 backlinks or is there the possibility that site 2 would link higher because there are more backlinks even though they are no-follow? The reason why I ask is because I want to start a link building campaign and I am not sure whether to only target sites that don't use the nofollow tag. I have also heard that Google doesn't like the idea of sites that link build from only sites that don't use the nofollow