The KTM is the better of the two off-road but there are any number of better bikes off-road, if that is your real focus. Bottom line is which do you do more, road or dirt. That was what I gleaned from the BIKE test. If you aren’t using it as intended the KTM is a waste and the BMW offers more flexibility.
Having ridden both recently, while trying to make my final decision, here's my take. Both run WP suspension and with the proven para/telelever set up the GS is easily more compliant on the road than the KTM. It soaks up the bumps easier with less transfer to the rider. This plus the more comfortable seat doesn’t allow fatigue to enter the equation. Sure you could go 700-800 kms per day on the KTM but there’s no doubt you will be sorer than on the GS. I did a 1,400 km day from Moncton, New Brunswick to Ottawa, Ontario and wasn't sore @ all. In terms of power to weight figures the KTM has a very low amount of torque compared to the GS. This is probably attributable to the short stroke of the V-twin as well as the extra c.c.’s that the GS has. BIKE has the KTM @ 71 FPT @ 6800 rpm to the GS 84.3 FPT @ 5800 rpm. In contrast the KTM makes 88.9 BHP @ 8300 rpm to the GS 84.3 BHP @ 6700 rpm.
The thing is, these are hardcore numbers that shouldn’t really be a concern to any rider here. If these type of numbers were important to me I would have kept my ZX10R @ over 150 BHP and 70 FPT instead of buying a GS. The GS and KTM are more than capable for the majority of riders here. Looking @ each companies mandates and philosophical approaches to motorcycling it’s readily apparent that the KTM will be the better dirt bike and the BMW will be the better sport touring bike with a reasonable cross-over into the other end of the spectrum for each.
For me the decision boiled down the backup factor from the factory and dealer. KTM dealers, in Canada, come and go. Living in Ottawa, we have a KTM dealer but if and when I move back to the Windsor area I cannot be guaranteed a KTM dealer in the area. The previous dealer in the Windsor area dropped KTM from his shop once the buyout by KTM USA was affected. He had a hard time getting parts from KTM Canada. Plus the fact that the 950S needs a specific dealership didn’t help the KTM buying decision. In contrast BMW dealers have increased in Ontario and Canada overall. This coupled with the 3-year warranty and 3 year roadside assistance plus a huge aftermarket backup adds more to the BMW’s favour. BMW made the class and KTM has raised the bar in the class to which BMW has responded well. Realistically you can’t go wrong with either one. Personally I’d love to own both but realistically the BMW is the more refined product for me.
In addition to this the ride quality is completely different. I found the KTM top heavy, harder to settle into initially and hard to turn on pavement. Now to be honest it was on Pirelli knobbie-wanna-bes so that makes a difference but I've read a lot of complaints regarding the lack of tire choices for the 950. Basically it's Pirelli or nothing else, in terms of performance. Off-road, neither is the king. A 640 Adv or KLR 650 will leave you in the dust, literally, on either model so I wouldn't be pushing my pride and joy against a dirtbike with lights off-road that's half the cost and in its element. Despite what many say about the KTM 950 it isn't a beginners bike off-road. Most off-road riders cring @ the idea of a 650 let alone a 950 with a 100 rwhp and more weight.
Finally what really did it for me was advrider. Not only did I see tons of complaints regarding engine breakdowns @ what I felt was low mileage but also the lack of factory backup here in N.A.. The Europeans seemed to have no complaints in that regard so I guess it has something to do with KTM USA and less to do with KTM itself. Still I would check out advrider.com if I were you and look up reliability. I've seen posts regarding the following:
water pump impeller hitting the sides of its casing, coming off and causing cooling issues
oil pump failure
blown head gasket
black gunk in the radiator
radiator leaks
running on one cylinder @ 112 kms here's the link
several posts re: blown motors @ less than 10,000 kms
melting bodywork
poor carbueration
overheating
oil leaks
weak/cracked rims
clutch problems
brake issues
distributor chain issues leading to a blown engine
dirt in carbs due to no fuel filter
here are some links:
http://www.advrider.com/forums/showthread.php?t=51226&highlight=problem
http://www.advrider.com/forums/showthread.php?t=32037&highlight=reliability
Other than these issues it's a really great bike. That site and the posts I saw there were what really turned me off to the bike. Other than that the warranty in N.A. is for 12,000 km or one year compared to BMW's 3 yr warranty/road side asst. I've already got 15,000km on the 12GS so I'd be through my warranty by now. Ugh.
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Maybe we could lock you two in a bed-sit fitted with TV cameras 
