Functional Components:

• Simpler syntax
• Use React Hooks for state and lifecycle methods
• Better performance (less overhead)
• Easier to test and debug
• Preferred approach in modern React

function MyComponent(props) {
  const [count, setCount] = useState(0);
  
  return <div>{count}</div>;
}

Class Components:

• More verbose syntax
• Use this.state and lifecycle methods
• Have access to this context
• Legacy approach (still supported)

class MyComponent extends React.Component {
  constructor(props) {
    super(props);
    this.state = { count: 0 };
  }
  
  render() {
    return <div>{this.state.count}</div>;
  }
}