Sephardi vs Israelite

Sephardi and Israelite both are nouns.

Word	Noun	Adjective	Verb	Adverb
Sephardi	Yes	No	No	No
Israelite	Yes	No	No	No

As nouns, Israelite is a hypernym of Sephardi; that is, Israelite is a word with a broader meaning than Sephardi:

Sephardi: a Jew who is of Spanish or Portuguese or North African descent
Israelite: a person belonging to the worldwide group claiming descent from Jacob (or converted to it) and connected by cultural or religious ties

Other hypernyms of Sephardi include Hebrew, Jew.

Sephardi (noun)	Israelite (noun)
a Jew who is of Spanish or Portuguese or North African descent	a native or inhabitant of the ancient kingdom of Israel
	a person belonging to the worldwide group claiming descent from Jacob (or converted to it) and connected by cultural or religious ties