Single message transformations allow lightweight modifications to individual messages as they are ingested or emitted by Kafka Connect connectors. Some key uses of single message transformations include data masking, event routing, event enhancement, and partitioning. They involve simple, message-at-a-time transformations configured through properties rather than writing complex code. Kafka Streams is better suited for more complex transformations like aggregations, joins, and windowing where the transformed data is stored back in Kafka.