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The balanced matrix method and the aggregation method for model reduction are compared. It is shown that there is a "natural" choice for the aggregated reduced model output matrix that makes the aggregated model comparable to the balanced matrix reduced-order model. This assumes that the eigenvalues retained in the aggregated model are truly dominant and that the orders of the two models are equal. However, there are situations in which the choice of the eigenvalues to be retained in an aggregated model is not obvious. In these cases the balanced matrix method may be superior. The models are compared in two numerical examples.