Here are points  to compare:

First, Web hosting allows an individual or company to rent a space on a server, which will host all the data and information of their given website. Second, A website builder cannot host more than one website or act as a server for anything other than the website you’re building with it. Third, Web hosting is leased room or digital real estate, it is not a website-building service. Fourth, A website builder allows the user to actually create the website they’re going to host on a server. Web hosting is a main and web builder allow to build on top that land.

What i need from Website Builder?

Variety of Templates

This is easy for beginner to create their own interface website. Each website builder will have their own pre-coded, engineered and color-coordinated templates catalogue. However, once chosen, it is possible to customize these templates to suit a brand or character.

Functionality

A good Website Builder will have an image editor, “drag and drop” functionality, and customizable templates. The functionality of a website builder should be easy to use and versatile.

Mobile Formatting

Nowadays, mobile formatting is not only important for websites, it’s an imperative. However, you can’t risk losing customers because a website doesn’t load properly on their mobile device.

User-Friendly Interface

Website builders are intended to be user-friendly, making it easy for even the most uneducated computer of us to build a site. Besides that, if anything on the website breaks, or if some parts do not fit together . In conclusion, a good provider would offer customer support to troubleshoot the problem.

SEO

SEO (search engine optimization) are now utilized by every successful website, so you should expect your website builder to offer some form of both. Similarly, user can easily know what they doing wrong and where to improve.