Honestly depends on the situation.
For raiding, Paladins win hands down. Soulfire and Divine Strength give them a job to do. Shadowknights rarely (if ever) get to pull, because Monks and Necromancers have better toolkits for the most part. Yes, Shadowknights are still good offtanks in raids, but so are Paladins. Paladins are probably the superior offtank as well, since raid mobs basically resist all Shadowknight spells.
For grouping, both are basically equal. Paladins work better in a group without a healer, Shadowknights work better in a group without a puller, and both are basically the same in a group with a healer and a puller.
In solo situations, it depends. Both Paladins and Shadowknights are bottlenecked by mana. Their mana pools are relatively small, and can get drained quickly if things go bad. Shadowknights deal more damage, and can kill mobs more mana efficiently than Paladins due to fear kiting and FD. This is especially true with caster mobs, because Paladins are forced to cast a lot of stuns, whereas a single fear can last for at least 40 seconds. However, Shadowknights lose a lot of options when fighting mobs that are highly magic resistant or immune to fear. In those cases, Paladins have the advantage because self heals cannot be resisted. That means they can spend all of their mana in the fight, whereas a Shadowknight wouldn't be able to use their spells, unless you do something like summon an eye to cast lifetap on.
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