Major difference: a reed switches on when there's a magnet present, off when not. So you have to poll it constantly, or if your movement is very fast you have to use interrupts to not miss ticks.
This sensor changes state upon a magnet passing, so you have to look for state change (high to low, or low to high) to detect a passage. Makes your code slightly more complex but gives you a full rotation to read the sensor, not just the short time of it passing.
So whether it's better for your project - hard to say.
Your sensor is billed for detecting rotation, and it will be very easy to read (no fast polling needed - though you still need that if you want to measure the speed as you need to know when exactly the change took place). Having your magnet attached to the wheel in a fixed orientation will make it work predictably.
Do start using a digital pin and digitalRead() instead of analogRead(). You'll simply get a 1 or 0, HIGH or LOW signal, which is exactly what the sensor puts out. A digitalRead() is much faster than an analogRead().