Which is the best practice for coordinate conversion of the features / shape files?
I often use the following method
A second method :
I have tried both the methods and I get different x & y values.
the second method doesn't project the data...
You state …. apply the transformation. ….
hopefully you don't mean use the Define Projection tool... because it doesn't work... telling a file that it is something that it isn't is an error.
Method 1, where you specify everything directly and project the file overtly is the best method... there are variants, but for the nanoseconds difference, it really doesn't matter.
As for the shapefile... Destination should be a featureclass in a file geodatabase.
Export to shapefile if needed for other applications
The second method (in detail) after getting the shape file from step ii
Thanks for your comments.
Two things to check in your second workflow.
1. In Calculate Geometry, make sure to use the data frame's coordinate system
2. When you set the Transformation, make sure it's using the same transformation that was used in the Project Tool.