If you're after image quality, the LX5 wins. My image quality obsessive co-worker ditched his S95 for a LX5. The S95 has horrendous distortion if you look at the RAW files. The camera automatically corrects for the distortion in the JPEGs, but you lose part of the image. The LX5 has distortion too, but not as pronounced.
Canon S95 uncorrected RAW:
Image corrected for distortion in Lightroom:
