SQL 2016 Authentication Mode for SEPM 14

I'm in a single domain environment and looking to set up a new SEPM 14 server since I can't do an in-place upgrade of my SEPM 12 server running on Windows 2003 Server.  Planning on loading SQL 2016 Standard on the SEPM server running Windows 2016 Standard.  Where the SQL install is concerned, can anyone tell me the pros/cons of going with Windows Authentication Mode vs Mixed Mode?

Also, what other SQL components will I require for an on-box install of SQL 2016?  I can find step-by-step instructions on installing SEPM 14 but have yet to come across docs on loading SQL 2016 itself for use by the SEPM server.  Naturally don't want to load everything and yet want to install enough to run/manage SQL going forward.