I only own the Transit. But here is a comparison based on what I have read.
M-Audio Transit
+ Max 24 bit / 96kHz (both in and out)
+ Analog line-in input
+ Optical input
+ Inputs can be recorded to computer
+ Optical output
* Digital volume control from computer
* Powered by USB
- Requires drivers (available for Mac OS X and Windows)
Nuforce uDAC
+ S/PDIF coaxial output
+ Analog RCA outputs
+ No drivers required (?)
* Analog volume control on the uDAC
* Powered by USB
- 16 bit / 48 kHz
The Transit's recording capability probably isn't relevant to most readers here. But it may come in handy if you ever need to record something in the field. The 24 bit / 96kHz is nice, but bear in mind that normal CD quality is just 16 bit / 44 kHz.
Drivers for the Transit have been known to be a little flakey on the Mac. There's a workaround:
Replace the M-Audio Transit USB soundcard's drivers - Mac OS X Hints
But note that it was posted in 2004, and M-Audio have updated their drivers since then. I'd still prefer if drivers were not needed at all though.
Digital vs analog volume control is a subjective preference. Digital means there's no volume dial on the device, so you must do it through the computer settings. You can also control the volume from some computer keyboards. Analog gives you finer control, and a convenient dial, but system volume settings on the computer will have no effect. Application volume settings (e.g. iTunes) should still work, but I suggest leaving that at 100% all the time for best sound quality. Otherwise the signal gets messed with twice--once by iTunes, and a second time by the Transit/uDAC.
Can't compare the uDAC sound quality since I have not heard it. And that is really the main question here, I think. Looking forward to hearing from anyone who has both.