The palette is larger on SMS, 64 vs 56 though there are are also a couple of redundant gray tones in the NES one. The NES one has a better grayscale and one or two more brownish tones but is worse at most other shades. Though the sometimes lower saturation shades on NES is preferable to some or for certain games/scenes.
Some NES to SMS mockups:
https://imgur.com/a/2B6NClh
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