PBKDF2

The PBKDF2 algorithm is one of the oldest and most solid password algorithms out there. It has also, however, been shown to be the least secure out of all major password algorithms. The main reason for this is that it doesn't make use of any memory cost or other method of making it difficult for specialized hardware attacks, like GPU cracking attacks. It is still, however, used all over the world, since it has been shown to be a very reliable way to encrypt passwords. And it is most definitely better than trying to develop a password algorithm on your own, or god-forbid, not using any encryption on your stored passwords.

Other algorithms

Seeing as PBKDF2 is shown to be very weak in terms of protection against GPU cracking attacks, it is generally advised to go with Bcrypt, if not Scrypt or Argon2. When unsure, Bcrypt would probably be the safest option, as it has no memory cost which could become a problem if not properly calibrated to the machine doing the password verifications.