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Both a power cage or a squat rack allow you to do the same movements. The biggest difference is how you do them.
Safety– In a squat rack, if you get stuck, you have to dump the bar to the floor. A power cage allows you to drop the bar onto the lower horizontal bars, rather than the floor.
Flexibility– On a squat rack, you can do squats and bench presses. A power cage allows you do not only do those two exercises, but dead-lifts, rows, pull-ups, chin ups, and more.
Size– A squat rack is a space saver design. A power cage takes up more room than a squat rack.
Stability– A squat rack isn’t as stable as a power cage, especially for heavy lifts.
Price– Power cages usually cost more than squat racks.
So, if you’re on a budget, limited space, and looking to do a limited number of weights – and the lifts you’re doing are not requiring you to use heavy weights – a squat rack may be perfect for you. But, if you have the room, your workouts require extensive movements with heavy weights, and you’re willing to pay a little more, a power rack is your best choice.