I suspect the answer depends on the relative strength of the DAC in the processor v that in the 5400ES, but do you have a preference? In my case, i'm using HDMI and the processor is a Cary Cinema 11a, but I'm considering moving to a Parasound JC-2 BP and using balanced analog. I also use 7.1 analog from an Oppo 105 and balanced analog from a JC-3.
I run my 5400 balanced analogue to a BAT VK50SE pre (you have to - it has no RCA sockets) and it works very nicely. I like the JC-2 very much - and you will too. I believe the preamp takes quite some time to break in though.
Yesterday I connected the 5400ES to the balanced input of the Cary and listened carefully. The sound seems substantially improved, with more detail and soundstage depth and delineation than it had been using the HDMI connection.