1) What is the difference between awk and sed ?
Both are tools that transform text. BUT awk can do more things besides just manipulating text. Its a programming language by itself with most of the things you learn in programming, like arrays, loops, if/else flow control etc You can "program" in sed as well, but you won't want to maintain the code written in it.
2) What kind of application are best use cases for sed and awk tools ?
Conclusion: Use sed for very simple text parsing. Anything beyond that, awk is better. In fact, you can ditch sed altogether and just use awk. Since their functions overlap and awk can do more, just use awk. You will reduce your learning curve as well.