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By using Public key authentication, you don't need to transmit passwords over the internet, this reduces the risk of interception or eavesdropping.
In public key authentication, both the client and server generate cryptographic keys. Mutual authentication ensures that both parties can verify one other's identities, hence improving overall security.
Public key authentication eliminates the need for users to remember and manage passwords. This reduces the burden on users and administrators for password resets.
As public key authentication lets you access the remote system, this helps in scripting, batch processing and other automated operations.
If a private key is compromised or an employee quits the firm, key revocation is a simpler and more effective solution than changing passwords for many users.