This paper compares two methodologies for selecting peer institutions used by the National Center for Higher Education Management Systems (NCHEMS) and by the State of Kansas. The University of Kansas was used as a test institution to compare the NCHEMS and Kansas methodologies. Attention is directed to differences in results, the impact of data availability and data quality on results, and whether one methodology provides a better set of peer institutions than the other according to descibed criteria. The procedure used most often at NCHEMS for selecting a group of comparable institutions is based on criteria established by the home institution. After selecting institutional characteristics for judging similarity, institutions are rank-ordered by their similarity. The Kansas methodology was developed to quantitatively assess earlier peer selections that were based on informed judgment. Categories used to determine institutional similarity are enrollments, funding and expenditure patterns, and degree level. Appendices include: a list of characteristics used at NCHEMS to select peer groups for four-year institutions; a list of factors and weights used to determine peer groups for the University of Kansas using the Kansas methodology, and a list of strengths and weaknesses of the two methodologies. (SW)