Analogue video has three main formats: Composite, S-Video and Component.

Component out will always yield better Picture Quality (PQ) than composite. This is because in component video, the video signal is split into three channels:

Y - carries luma (brightness) and sync information.
Pb - carries the difference between blue and luma (B − Y).
Pr - carries the difference between red and luma (R − Y).

This results in better color restoration and reproduction.

On the contrary, in composite video, the complete video signal is multiplexed in the same channels and it is demultiplexed at the receiving station. It is possible for their multiplexed counterparts to interfere with each other.

Thus the component video is able to send send non-interlaced or progressive scan video whereas in composite video can yield interlaced scan video only.

The pictures below show the component video out and the component cable.


p/s. S-Video or Separate Video, (sometimes incorrectly referred to as Super Video), is an analog video signal that carries video data as two separate signals: luma (luminance) and chroma (color).

Source: Wikipedia and others.