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uMatrix contains similar ad blocking functionality as uBlock Origin via host files, though it can't handle cosmetic filters/element hiding, only network filters, aka domain blocking. It also has several other features like sandboxing and deletion of cookies and web storage from blacklisted domains which are defined by the same filter lists that ad blockers use, scheduled deletion of session cookies and cache, hyperlink auditing (tracking technique) prevention, HTTP referer blocking (I recommend letting Referer Control handle that though, so that you are able to whitelist sites that break), and strict HTTPS (blocking of unencrypted HTTP content - called mixed content - from being loaded into HTTPS pages).

As for which extension to use when it comes to uMatrix and uBlock Origin, if you want a full-fledged ad blocker with element hiding and not just domain blocking, then use uBlock Origin. If you like uMatrix features, like how it handles sandboxes and deletes cookies from blocked domains, use uMatrix. Nothing says that you can't use both either. Using hosts files in uMatrix while at the same time using filter lists with cosmetic filter rules in uBlock Origin is a totally viable option.

You can find a uMatrix backup file containing filter lists that I recommend and personally use here. (Ctrl + S to save the backup file and then import it by clicking the "Restore from file..." button at the bottom of the "About" tab, select the backup file in the dialog box that will pop up, go to the "Hosts files" tab, click the "Auto-update hosts files." checkbox and click the yellow "Update now" button). In case you want to combine uMatrix with uBlock Origin, here is a backup file for uBlock Origin that only contains the filter lists that uMatrix can't handle. If you want descriptions of what each and every filter list blocks or want to add subscriptions yourself, check out filterlists.com.