Coax is normally the better option when choosing between optical and coaxial.
Usb to an asynchronous bridge or dac can however give very good results because jitter is effectively minimized.
I'm using the HRT Musicstreamer II+ feeding some prof. nearfield monitors (Genelec) in my office and it sounds better than any normal CD player.
In my main setup I have tried three asynchronous usb to s/pdif converters feeding an Emotiva dac and all three sound very good, much better than the dac's own adaptive usb interface. The Musical Fidelity V-Link is a good affordable converter and will work with any dac with a coax input, including the one in a surround sound amp, giving it an immediate SQ boost.
More expensive options, both converter and/or dac can be had for more $$ if you think your setup warrants it, including ones with built in preamps and headphone amps.
Good resource is
www.computeraudiophile.comEdit: Also look at Firewire dacs - a lot of professional audio is firewire and if I understand correctly it is also asynchronous.