Both devices are pretty much the same when it comes to hardware, as both e-Book readers feature the e-ink screens. In terms of reading experience, they are on equal footing. However, that is where the similarity ends.
First, the Kindle’s Wi-Fi version has a web browser built in while the Kobo Wi-Fi does not. This means you can leverage the Wi-Fi capability of the Kindle to browse the web instead of just using the wireless connection for downloading e-Books. The Kobo’s Wi-Fi connectivity is only good for acquiring new e-Books.
The Kindle also has audio capability, making it an audio player in addition to its e-Book viewing feature. It has speakers and a headphone jack. It even has a text to speech feature that lets you listen to e-Books if you are not in the mood to read them. It supports the MP3 audio format. The Kobo does not have this audio feature. In terms of e-Book format, the Kindle has a wider scope by supporting AZW, MOBI, PRC, PDF and TXT formats while the Kobo only supports the EPUB, TX and PDF formats. In this situation, the Kobo may seem to be the underdog but its ability to support the EPUB format actually gives it a wider scope of selection especially in terms of free e-Books. This is a very important consideration especially if you are a fan of downloading free e-Books. In the Kindle vs. Kobo battle in terms of features, the Kobo beats the Kindle, but only if you do not need audio payback and a web browsing capability.