One important difference between the two awards is that: the Caldecott Medal is awarded to the most distinguished picture book, while the Newbery Medal is given to the author of most distinguished contribution to American literature for children. So, the Caldecott rewards pictures and graphics, while the Newbery is more literature based.
Both medals are given by the American Library Association. Both medals are the most prestigious within their field.
The Caldecott gets its name from an English illustrator from the 1800s named Randolph Caldecott. It is the highest honor that an artist can get for children's book illustration. The annual award has been granted every year since 1938.
The Newbery gets its name from John Newbery, an English children's book publisher; the annual award has been granted since 1922.
There is some controversy about the committees who pick the books; some researchers argue that the books are too hard for children. One researcher pointed out that there is a less than 5% overlap between the Children's Choice Awards (International Reading Association) and the Notable Children's Books (ALA). That is food for thought. I lack an opinion about that, at present, since I feel that I have not read enough Newbery's or Caldecott's to comment.
In terms of comparing the two awards against each other, one award is not better than the other--in my opinion. They are equally prestigious and convey the same thing: that the recipients have achieved the highest within their realm--whether that is literature or illustrations.
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