Jon, yes, either can transfer anything digital. The difference is that one is electrical, and the other is optical, but a digital bitstream can carry the same DD or DTS info with either.
I prefer the coaxial myself, and yes, there are adapters that will convert either to the other. I use an optical-to-coaxial to connect the DD out from my satellite receiver (no coax) to my pre-pro (no opt).
Larry
www.fineelectricco.com