Apple TV vs Airport Express - Airplay Streaming

AE is perfect for Audio.

Using the AppleTV will confuse your iPad, and it will want to transfer video and other stuff to it, because it thinks it's a video device. It should work though... especially if it's coming out of iTunes.

They both have optical. The AE's 3.5mm port doubles as optical.

3.5-mm audio minijack for analog or optical digital sound3

Click to expand...

https://www.apple.com/airport-express/specs/

Such as this cable (I think, you should double check) 3.5mm mini-TOSLINK to regular TOSLINK.
http://www.amazon.com/TOSLINK-mini-Toslink-FIBER-OPTIC-Discontinued-Manufacturer/dp/B00006LVF3

As both are relatively cheap and current why not find someone who owns one/both and test them

I have both

I use both, my AppleTV is connected to my TV, my Airport Express to my iHome.

I stream audio to both, depending on what I'm listening to.

Either will work, though the AE can act as a WiFi repeater and the ATV can stream video, so pick which one is important and run with it.

They're similar in size and weight.

I have both and an Airplay receiver and have used them all. For me, the AppleTV route makes less sense as I sometimes want to watch a video and listen to different audio from what's on the video. (i.e. streaming pool match while listening to unrelated music) Other reasons for not using the AppleTV? It gets a "lot" of updates, while there are less for the Airport Express. I guess you could ignore them.

You can generally find an Airport Express used for around $40. I think the first generation was prone to failures, so I'd steer clear of that.

also, the aTV needs a TV attached to set it up, all menus and setting appear on the screen.