i think linear algebra is more basic and more useful, and indeed almost essential in order to understand diff eq. on the other hand some people might find it useful to learn diff eq as an example of linear algebra at work, and then learn the linear algebra afterwards.
It is my theory that linear algebra was invented to systematize the techniques of elementary differential equations, i.e. linear ones. In fact, as pointed out in the notes for math 4050 on my website, the so called jordan form theory for matrices essentially says that all linear maps look like the basic linear differential operator D acting on a solution of an appropriate linear constant coefficient diff eq.
More precisely, jordan form says that matrices can be decomposed into pieces that correspond to polynomial factors of form (t-c)^r. These in turn correspond to solutions spaces of the differential operator (D-c)^r.
"Eigenvalues" arise in studying the easiest equations (D-c) which have solutions like e^(ct).
so really elementary diff eq is just linear algebra at work, and linear algebra is just linear diff eq made abstract.
Yet again, the most important linear map is D, differentiation, and the most important function is e^t, and the reason for this is that e^ct are the eigenfunctions of D.
So the two subjects are the same. Hence studying linear algebra without seeing the connection with diff eq is kind of dumb, and studying diff eq without having the linear nature of the subject pointed out is equally myopic.in the end, the fact that the general solution of a linear diff eq is of form f0 + g, where f0 is one particular solution and g is the general solution of the homogeneous problem is the main idea of both subjects. Some will learn this idea better in practice, i.e. from diff eq, and others may appreciate it abstractly, i.e. in linear algebra.
so everyone should know both subjects, even if only interested in one of them.
conclusion: take linear algebra but be sure the connection with linear diff eq is pointed out. consult for instance friedberg insel and spence, or at a higher level, pages 234-237 of chi han sah's abstract algebra (or my 4050 notes).