xargs is more useful because it's posix so you can always guarantee it to be there (whereas with GNU Parallel you probably have to reach for a package manager to install it first). The ergonomics are worse though, as usual.
While there are cases when it makes sense to stick to what is specified by POSIX, there are also cases when the POSIX specification is so obsolete that using POSIX instead of some free ubiquitous programs is a big mistake.
Among these latter cases are writing scripts for a POSIX shell instead of writing them for bash and using xargs instead of parallel.