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The easiest way to tell the difference is that Sooty (Sty) shows up on genetics testing, and Dense Pheomelanin (DP) does not. Both darken the hair, but (I THINK) they do it in different ways. After a while you get used to how the different combinations look on the horses. I am pretty good at guessing on chestnuts, but not on bays, or buckskins. Both can be passed to foals.

That's right. Pheomelanin is the name for the pigment that makes a red coat. Black is caused by Eumelanin. So Dense Pheomelanin causes more red pigment to be produced, making the horse darker. Sooty also tends to darken from the top line down, where DP affects all red body hair. Black horses can carry DP, but it doesn't affect their color.