Better to state the difference because which is better it depends upon the requirement you have:
Cycle Count: Periodic counting of inventory items at regular intervals
Physical Inventory: Counting is done once / twice a year
Cycle Count: We can schedule the count
Physical Inventory: We cannot schedule this.
Cycle Count: We cannot have a snap shot
Physical Inventory: We can have a snap shot
Cycle Count: We can view the qty in the system
Physical Inventory: We can not view the qty in system
Cycle Count: We cane select the items using ABC analysis.
Physical Inventory: It is done for all the items.
Cycle Count: We need not to freeze inventory transactions.
Physical Inventory: Need to freeze inventory transactions.
Cycle Count: Recount is possible
Physical Inventory: Recount is not possible.
Cycle Count: We can maintain recount history.
Physical Inventory: No recount, hence no history.
Cycle Count: Adjustments can be procesed on approval.
Physical Inventory: Can be done using adjustment concurrent