Both offer more than a single shared account. They solve different problems.
RESELLER HOSTING
A WHM account from which you create cPanel accounts for clients. We manage the server entirely.
Right for: web designers and agencies hosting client sites, and anyone selling hosting under their own brand.
You get isolation between clients and branding, without server administration.
VPS
A machine of your own, with root access.
Right for: applications needing specific software, persistent processes, or control over the stack.
WHICH FOR HOSTING CLIENTS
Reseller, unless you need something it cannot provide. It gives you what you actually want, which is separate accounts and your own brand, without taking on server maintenance.
A VPS running cPanel also lets you host clients, with more control and more responsibility. That step makes sense when you have outgrown reseller limits or need configuration reseller does not permit.
THE COST COMPARISON
A VPS with a control panel licence and your time spent maintaining it is often more expensive overall than a larger reseller plan.
