Linear PCM involves no compression of the original studio master, and is therefore raw digital lossless data. LPCM also takes up a vast amount of space on a disc, and this is the main reason why it is used very rarely on newer Blu-ray releases.
Dolby TrueHD, on the other hand, is a lossless compression codec. Although it is compressed to take up less disc space than an LPCM track,
once decoded it is also bit-for-bit identical to the studio master. It's essentially like a ZIP file on a computer - once it's unzipped, you get a completely identical copy of the original LPCM track.
DTS-HD Master Audio is slightly different, since it is configured to include a lossy DTS 'core' (at 1.5mbps) and an 'extension' which re-introduces the excised data in suitable systems to create, once again, a fully lossless track. This takes up more space than a Dolby TrueHD track, but one advantage is that there is no need for a separate soundtrack on the disc, for sound systems that cannot handle HD audio. A receiver capable of decoding DTS will simply be able to decode the 'core' of the track.
So, in answer to your question, and as nads has already mentioned briefly, Linear Pulse Code Modulation is the foundation of each of these codecs - both D THD and DTS-HD MA will, whether in player or receiver, be decoded to raw LPCM and converted to analogue for amplification to your ears.
As for which is preferred, I'd reiterate that each audio format is designed to re-produce the same lossless audio track. I suppose, if you're a purist or an 'audiophile', you might prefer the idea of raw LPCM on a disc, completely uncompressed and more straightforward to handle. But rest assured that each one of these formats represents a vast upgrade over DVD.