Utility tokens offer a right to use a product or service, whereas equity tokens represent equity interest in a company.
Utility tokens are unregulated whereas equity tokens fall under the same regulatory oversight as other investment products and must meet strict conditions of regulators, which naturally reduces the potential for scams.
Utility tokens's value is not related necessarily have a direct connection with the company's value and success, while equity tokens, representing true ownership of the company, are directly related to the growth of the company, and can provide their holders investors' rights and economic interest.