Advantages:
Looks professional.
Much more tools to use.
Can stack and layer images.
Can make it more creative.
Disadvantages:
More complicated.
Can take a while to learn.
Summary:
I think that Photoshop is better to use, than word, when creating a mood-board because it makes your work look more professional and creative. Additionally, Photoshop lets you use a lot more tools, for example: magic wand tool which is used to remove backgrounds from images or remove certain objects of the same colour. Additionally, the multiple image transformation tools, e.g. scaled, rotation and distortion, allows you to layer and overlap the images in an appealing way. Also, Photoshop has a bunch of effects that you can place on your images, such as drop shadow.
However, Photoshop takes a lot more skill and takes some time to learn how to use it properly; meaning word is better for beginners or basic collages that don't need any effects. In conclusion, Photoshop is a much better platform to produce mood-boards and/or over products as it has many more options to edit photos and the end product i a lot more appealing to the eye.