Byram came back into the starting eleven for Leeds on Sunday and produced a solid performance at left-back as the Whites beat Millwall 3-0 at the Den.
He missed the previous game due to an injury and Jamie Shackleton played in his position against Sheffield Wednesday at Elland Road.
Newsome stressed that Shackleton did nothing wrong but Byram is the better full-back and his ability to use his left foot adds more balance to the team when he plays as the left-back.
The former White said on BBC Radio Leeds: “Jamie Shackleton has done a really good job in there but you can see Sam is more of a full-back.
“What I do like is that he gives you that balance.
“Although he is predominately right-footed, he can play with his left foot and a couple of times he opened himself out and clipped lovely balls down the left-hand side.
“That gives you balance as a team.
“If you got a right-footer playing at left-back, he is constantly cutting in to come on his right foot it unbalances the side.
“I can see why the manager rates his so highly.”
A product of the Leeds academy, Byram returned to Elland Road this summer seven years after he left the club.
Newsome conceded that he has been desperately unlucky with injuries over the years and Leeds are a better side when he is in the team.
“I have followed him for quite a while.
“I have seen him at Norwich over the years and he has been really unfortunate with injuries.
“It’s good to see him back in the side and hopefully he strings a good run of games together because we are a far better side when he is playing.”