This question is killing me, I'm looking foward to receive a good response with examples that show the difference clearly. Did I make any grammar mistake? Can you fix me, or write it a better way? Any help to improve my english is welcome, I'm taking it really seriously.
One of them is more versatile than the other
Without going into wads of detail: "stand out" means distinct from its surroundings. - It stands out because it is blue. "outstanding" means the same but for reasons of excellent performance. - She is outstanding. She is the bset in the class. "To stand out" is a verb. Outstanding is an adjective.