Canon SX720 HS has a
20.3MP 1/2.3 (6.17 x 4.55 mm ) sized BSI-CMOS sensor and features DIGIC 6 processor. On the other hand, Canon SX160 IS has a
16.0MP 1/2.3-inch (6.17 x 4.55 mm ) sized CCD sensor and features Digic 4 processor.
Canon SX720 HS's sensor provides 4.3MP more than Canon SX160 IS's sensor, which gives a significant advantage in real life. You can print your images larger or crop more freely.
On the other hand, please keep in mind that Max sensor resolution is not the only determinant of resolving power. Factors such as the optical elements, low pass filter, pixel size and sensor technology also affects the final resolution of the captured image.
Below you can see the SX720 HS and SX160 IS sensor size comparison.
Canon SX720 HS and Canon SX160 IS have the same sensor sizes so they will provide same level of control over the depth of field when used with same focal length and aperture.