While this question is a little opinion based, I'd say the second one is better. It reduces redundancy. Using the first method, you will have to do:
import utility
utility.utility.method1(...)
or:
from utility import utility
utility.method1(...)
Using the second one however allows you to simply do:
import utility
utility.method1(...)
or:
from utility import method1
method1(...)
If you are making a class that only contains static methods, my question is "why do you need the class?" It contributes nothing positive here.