SharePoint Group  | Active Directory Group  | 
Members of this group can be added/removed from within SharePoint. The permission to add or remove users from the group can be delegated to SharePoint users.  | Members of this group can be managed within Active Directory. Only Active Directory administrators have the permission to modify group memberships.  | 
Members of this group can be visible to users.  | Members of this group are not visible to users.  | 
Cannot contain another SharePoint group as member.  | Can contain another Active Directory Group.  | 
Must have a unique name on site collection level. The name is the unique identifier of the group.  | Can cause serious problems in lage scale scenarios: A user might only be a member of 1024 Active Directory groups (recoursively). If this number is reached the user is no longer able to log on to Windows. Read the Microsoft documentation for more information.  | 
Can contain SharePoint users that do not exist in the Active Directory.  | |
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