According to the Apple support article listed above the iCloud backups are also automatically alway encrypted backups and maintain the password and sensitive data information.Encrypted backups from iTunes saves all your passwords and other sensitive data i.e. data from my Apple Watch so I don't have to set it up all over again. It is also much quick to set up the phone in general. I would recommend doing it that way.
More info on encrypted backups if you have never done them:
https://support.apple.com/en-us/HT205220
"You can also make a backup in iCloud, which automatically encrypts your information every time."