That is correct. You can make a 470 into a 520 by changing the jugs, but first you must bore out the holes in the case on the 470
You will definitely get more power out of the 520 (torque), but a 470 is no slouch. It will probably give you better fuel economy than the 520 also, though niether will be spectacular
Remember that the HP ratings on aircraft engines is just that: a rating. It does not mean that every engine has that much power, and just because someone says a particular modification will give you "x more horsepower" doesn't mean that you are going to get that much if you do that mod on your engine.
You might want to look more at what size prop the MFG's suggest for each engine and decide if it is worth the money to you to go with the larger engine, rather than just basing off of HP ratings.