the second one is more like a ''pure output''.
Note that if you're using something like DSP manager or Viper4android, like Nicklst said, it will bypass it.
I did a lot of tuning with ATHM50 headphone and viper4droid, with a nice convolver driver, and subjectively, I like more the sound from viper4droid, even if my phone is compatible with HD output and I run FLAC files.