Which one is better?
If you want to tether your Nexus 7 to your phone, then go with CyanogenMod 10.1
Does the device works faster and smoother with cyanogenmod?
I tether all the time running stock.
To the op, better is a little subjective. Depending on who you ask and depending on what they value in their ROM you'll get a variety of answers. Try em both and decide for yourself.
Sent from my Nexus 4 using Tapatalk 2