I don't know that it's documented anywhere but from looking at the results my guess is that PhotoScan uses some sort of a Poisson Surface Reconstruction (PSR) internally when building arbitrary smooth meshes, so I'm not sure it's a case of different algorithms. I just prefer to go straight to the source (
http://www.cs.jhu.edu/~misha/Code/PoissonRecon) in order to get more control over the results. The Kazhdan and Bolitho version also gets cool new features before they show up in any of the third party tools that are based on their work. For many data sets, PSR is also much better than any of the algorithms, proprietary or otherwise, that I've found in commercial laser scanning packages.
Regardless, looking at the raw point cloud should provide some insight into how severe the noise is and perhaps where it is coming from.