Custom Objects and Custom Settings are both custom components in Salesforce that can be used to store custom data. However, they serve different purposes and have different characteristics:

Custom Objects: Custom objects are database tables that can store a specific type of data, such as a customer or an event. Custom objects can have custom fields, relationships with other objects, and can be used to create custom pages, reports, and dashboards. Custom objects are typically used to store transactional data that needs to be captured and managed in Salesforce.

Custom Settings: Custom settings are similar to custom objects, but are used to store configuration data that needs to be accessible from multiple places in the application, without the overhead of executing a query each time. Custom settings are used to store information that is static or frequently used, such as picklist values, pricing, or server URLs.

In summary, Custom Objects are used to store transactional data, while Custom Settings are used to store configuration data. Custom Objects are better suited for data that needs to be managed and displayed in Salesforce, while Custom Settings are better suited for data that needs to be easily accessible and reusable.